Quarterly payments

[lu1953]

For 2019 Turbo Tax estimated our quarterly payments should be about $2,000.00 per quarter.  In August 2019 we sold all our stock and realized a very big gain.  In doing my taxes on turbo tax now the estimated quarterly payments are over $8,000, I'm sure because of that gain.  We will not be generating that kind of income for 2020.  Can I use past experience and just send the I R S what I feel will be needed or will there be a penalty if I do not use Turbo Taxes estimate

[Irene2805]

A better plan is to make an adjustment on the Enter Investment Gains and Losses screen as you go through the interview for your 2020 estimated tax payments.

To review your estimated payment calculation for 2020 please follow these steps:

1. In your return, click Federal Taxes > Other Tax Situations.
2. In the Other Tax Forms section click the Start/Update box next to Form W-4 and estimated taxes.
3. On the screen, Adjust How Much Tax You Pay, click the No box.
4. On the Review Your Estimates screen, click the Review Now box.
5. When you come to the Enter Investment Gains and Losses screen, you will see the 2019 amounts listed.  Enter the expected 2020 amount in the 2020 column.  Enter zero if you don't expect to have any of that income.

[lu1953]

Thank you so much

[Bozz-is-well]

Lets say you sold $100,000 in stock and Your previous years tax bracket was 11% and now your in a 15% tax bracket. 15% of $100,000 is $15,000. Not including other personal income, You may fall into a higher tax bracket. Pay quarterly tax payments of $2,500 to $3,000. This will keep you from paying a lump some at the end of the year April or July of 2021.  Without more information of your circumstances.

Best Regards,

Brian