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What Form to Pay IRS Taxes After Selling Investments
01-13-2019, 10:31 AM
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#1
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Recycles dryer sheets
Join Date: Mar 2014
Location: .
Posts: 382
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What Form to Pay IRS Taxes After Selling Investments
From the Tax Moron Department:
I rebalanced in late December 2018, in hopes of lowering CG income for 2019 for ACA purposes. I know I owe $X in taxes, but I'm uncertain how to send a check to the IRS. I have made all my 2018 estimated tax payments and have therefore used up the quarterly forms, and I'm not sure they are the right form anyway.
How do I pay the IRS? What form, if any?
Also, if there IS a certain IRS form, do I mail it to the same IRS address to which I mailed my estimated tax payments?
Feeling Stupid, Even After Some Googling,
Mo
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01-13-2019, 10:36 AM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,202
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Easiest way is to do it online with EFTPS. https://www.eftps.gov/eftps/
You might not even have to do this. Look into the safe harbor rules. You may have paid enough in taxes compared to last year, and will be ok with an underpayment.
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01-13-2019, 10:36 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Dec 2014
Posts: 2,509
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go to irs.gov
select PAY
then select direct pay
from there you can pay with an electronic check (ACH withdraw from a bank account.
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01-13-2019, 10:46 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Location: Santa Paula
Posts: 4,070
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Quote:
Originally Posted by RunningBum
Easiest way is to do it online with EFTPS. https://www.eftps.gov/eftps/
You might not even have to do this. Look into the safe harbor rules. You may have paid enough in taxes compared to last year, and will be ok with an underpayment.
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+1
I have my estimated ta payments scheduled using EFTPS, as we
ll as the equivalent California FTB site. If I owe more taxes, I just add another payment to my list.
Estimated tax safe harbor rule. If your 2017 adjusted gross income (AGI) was more than $150,000 ($75,000 if you are married filing a separate return), you must pay the smaller of 90% of your expected tax for 2018 or 110%* of the tax shown on your 2017 return to avoid an estimated tax penalty
It turns out my 2017 AGI was a couple hundred short of $150K-dodged a bullet
__________________
Retired Jan 2009 Have not looked back.
AA 60/35/5 considering SS and pensions a SP annuity
WR 2% with 2SS & 2 Pensions
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01-13-2019, 10:49 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,007
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Quote:
Originally Posted by Mo Money
From the Tax Moron Department:
I rebalanced in late December 2018, in hopes of lowering CG income for 2019 for ACA purposes. I know I owe $X in taxes, but I'm uncertain how to send a check to the IRS. I have made all my 2018 estimated tax payments and have therefore used up the quarterly forms, and I'm not sure they are the right form anyway.
How do I pay the IRS? What form, if any?
Also, if there IS a certain IRS form, do I mail it to the same IRS address to which I mailed my estimated tax payments?
Feeling Stupid, Even After Some Googling,
Mo
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Did you reach safe harbor based on last year’s taxes? If so you don’t need to send more.
Did you already pay the estimated taxes due on 1/15? If not, just add to that payment.
Otherwise you can find a form online to fill out for 1040 estimated payments and send it in to the same address. No problem making an extra estimated payment and if you mail it by 1/15 you’ll even beat the deadline.
__________________
Retired since summer 1999.
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01-13-2019, 11:32 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2009
Posts: 6,682
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You need to view the instructions to Form 1040-ES and complete the worksheet contained with the instructions. If you are already in a "safe harbor," then just wait until April to pay whatever else you owe. Otherwise, you pay some (more) estimated taxes for the 4th quarter. You might also want to check out Form 2210 and its instructions.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.
"I want my money working for me instead of me working for my money!"
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01-13-2019, 05:23 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
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The two online methods mentioned have a big difference. EFTPS requires registration and response which you probably won't be able to do during the current shutdown.
DirectPay is easiest and is just an ACH transfer with no registration nor account needed.
As for investment taxes, it is all explained in IRS Publication 550 which I think nobody ever reads even though reading understanding it might save you a lot of taxes.
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01-13-2019, 05:33 PM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2016
Location: Colorado
Posts: 8,971
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Quote:
Originally Posted by LOL!
The two online methods mentioned have a big difference. EFTPS requires registration and response which you probably won't be able to do during the current shutdown.
DirectPay is easiest and is just an ACH transfer with no registration nor account needed.
As for investment taxes, it is all explained in IRS Publication 550 which I think nobody ever reads even though reading understanding it might save you a lot of taxes.
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+1 DirectPay is waaaaaay easier. The other requires a mailed PIN which takes time. DirectPay can be done in one session.
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01-13-2019, 05:45 PM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,202
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OK, agreed that EFTPS won't work for the Jan 15 deadline. Long term, I like it because I can see my history of payments. No idea if you can do that with DirectPay? I also like it because I'm sure it's going to my account. Can I make a typo with my SSN on DirectPay?
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01-13-2019, 05:56 PM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2016
Location: Colorado
Posts: 8,971
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Quote:
Originally Posted by RunningBum
OK, agreed that EFTPS won't work for the Jan 15 deadline. Long term, I like it because I can see my history of payments. No idea if you can do that with DirectPay? I also like it because I'm sure it's going to my account. Can I make a typo with my SSN on DirectPay?
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You can see your history and confirm it went to your account.
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01-13-2019, 07:24 PM
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#11
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Recycles dryer sheets
Join Date: Mar 2014
Location: .
Posts: 382
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I used Direct Pay. Thanks to everyone for their input.
__________________
“We always may be what we might have been.” -- Adelaide Anne Procter
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03-26-2019, 05:29 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Nov 2005
Posts: 1,595
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Quote:
Originally Posted by RunningBum
OK, agreed that EFTPS won't work for the Jan 15 deadline. Long term, I like it because I can see my history of payments. No idea if you can do that with DirectPay? I also like it because I'm sure it's going to my account.
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After years of mailing in personal estimated taxes and estimated taxes for the two irrevocable trusts for which I am the tax matters trustee, I just registered all three entities with EFTPS. No more mailing estimated tax checks will be nice. Thanks for the tip.
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