I have a quck question about estimated tax payments. We have never had significant capital gains until this year (mostly from selling some long term individual stocks and moving the money immediately into total stock market index funds to diversify).
Last year we got back about $2500 in tax.
So far this year we have $12,500 in long term capital gains and $3800 in short term capital gains.
We probably pay about $35,000 a year in federal tax.
It is my understanding that there is no penalty if your withheld tax (from W2) is 90% of the amount of tax due? It looks like we should be ok so far without sending in a separate Sept. payment, but if we are bad and get a lot more short term capital gains we may be in danger?
Last year we got back about $2500 in tax.
So far this year we have $12,500 in long term capital gains and $3800 in short term capital gains.
We probably pay about $35,000 a year in federal tax.
It is my understanding that there is no penalty if your withheld tax (from W2) is 90% of the amount of tax due? It looks like we should be ok so far without sending in a separate Sept. payment, but if we are bad and get a lot more short term capital gains we may be in danger?