So let's start here Who must pay estimated tax :
Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.
So, if the capital gains are significant you may need to make estimated tax payments. Short-term gains are taxed at your marginal income tax rate, but long-term capital gains (Assets held for a year or more) are taxed as follows:
|
Tax rate
|
Single
|
Married filing jointly
|
|
0%
|
$0 to $47,025
|
$0 to $94,050
|
|
15%
|
$47,026 to $518,900
|
$94,051 to $583,750
|
|
20%
|
$518,901 or more
|
$583,751 or more
|
If the capital gains are all long term, you would need at least $5,000 in capital gains to have estimated tax liability assuming your adjusted gross income is significant. If you have a W-2 job, I I often advise clients to adjust their Form W-4
Thank you for the question @Foodfight
Be well and safe!
Marc T.
Turbo Tax Expert
27 Years of Experience Helping Clients
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