SoReady
Recycles dryer sheets
I have a 1st class problem potentially.
I would classify myself as retired but my previous employers have requested my services on a short term contract basis occasionally. At the beginning of this year I had no contract and none to be expected.
In January I liquidated some positions and generated about a $35k LTCG. I figured I would end the year below 15% tax bracket so I figure no tax on the LTCG and moved on with life. So I never paid any estimated tax monies.
A month later a contract came up and I took it. I didn't expect to make enough to push me above the 15% bracket. The contract is over and I still expect to stay below 15% tax bracket.
As of today another contract is being offered. I will take it, but here is where some issues may arise.
1) I never did a payment of estimated taxes on the $35k ltcg. If by the end of the year I have made enough to push me above the 15% bracket will I get penalized for not paying estimated taxes through out the year or when the transaction occurred? If so, should I just pay all the taxes now and hope if #2 below is possible I just get a refund?
2) Are there some moves I could or can make to reduce my gross income so I have a chance to get back within the 15% bracket (e.g. IRA contributions, etc)?
Thanks,
Bob
I would classify myself as retired but my previous employers have requested my services on a short term contract basis occasionally. At the beginning of this year I had no contract and none to be expected.
In January I liquidated some positions and generated about a $35k LTCG. I figured I would end the year below 15% tax bracket so I figure no tax on the LTCG and moved on with life. So I never paid any estimated tax monies.
A month later a contract came up and I took it. I didn't expect to make enough to push me above the 15% bracket. The contract is over and I still expect to stay below 15% tax bracket.
As of today another contract is being offered. I will take it, but here is where some issues may arise.
1) I never did a payment of estimated taxes on the $35k ltcg. If by the end of the year I have made enough to push me above the 15% bracket will I get penalized for not paying estimated taxes through out the year or when the transaction occurred? If so, should I just pay all the taxes now and hope if #2 below is possible I just get a refund?
2) Are there some moves I could or can make to reduce my gross income so I have a chance to get back within the 15% bracket (e.g. IRA contributions, etc)?
Thanks,
Bob