If a company is sold to a new company and not rolling stock into the new company and forced to sell how do we go about getting figuring what we need to pay in to irs?

[katie-millett]

would like to get some of the money paid in before getting  a big surprise come tax time next year

[Anonymous_ · Accepted solution]

You can use TaxCaster to get an idea, although it has not yet been updated for 2022.

See https://turbotax.intuit.com/tax-tools/calculators/taxcaster

[katie-millett]

How soon will the 2022 updates be done? Our issue is the new company didn't allow the stocks to be rolled into their company so they had to be sold. Check was sent to us and once received put back into different stocks. The shares were sold at a amount the new company set. We just don't want to get hit with a surprise amount next year. I am trying to find a reliable CPA in our area that we can talk to because normally our taxes are fairly straight forward return. But with my husband still working/collecting SS and then this it is going to be a mess this year 

[Anonymous_ · Accepted solution]

The 2022 updates will most likely not be available until late October/early November at the very earliest.

Note that you will not owe a penalty for underpayment of estimated tax if you either owe less than $1,000 in tax after subtracting your withholding and refundable credits, or if you paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller. 

See https://www.irs.gov/taxtopics/tc306

[Opus 17]

Your gain is the difference between what you paid for the stock and what you sold it for, it doesn't matter that the sale was forced.  If you got the stock through your employment, your cost is what you paid taxes on as part of your taxable income.

Capital gains are taxed as regular income if held one year or less, and as long term capital gains if held more than one year.  Long term capital gains tax rate is 15% for most taxpayers and 20% for high income taxpayers, you can see the brackets here.

https://www.nerdwallet.com/article/taxes/capital-gains-tax-rates

Your state will likely tax your gains as regular income, state tax rates are 3%-13% depending on the state and your income.

If you made an estimated payment now of 10% to your state and 20% to the IRS, you would likely be more than covered, and might get a partial refund. 

[SweetieJean]

In the meantime, watch the news for any 2022 tax law changes that Congress or the states may make.

[SweetieJean]

Also see:

Net Investment Income Tax | Internal Revenue Service (irs.gov)