It is hard to estimate the additional tax holding with stock gain/loss more than expected. Is it possible to pay more tax in January for the prior year so that I won't be penalized for paying too little tax? If so, what is the process? Thanks.
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You're right, trying to plan your taxes when you have capital gains is a challenge.
The easiest way for you to play it safe is if:
I don't know what you mean by "Is it possible to pay more tax in January for the prior year."?
For additional information about IRS penalties please refer to: Underpayment of Estimated Tax by Individuals Penalty
You're right, trying to plan your taxes when you have capital gains is a challenge.
The easiest way for you to play it safe is if:
I don't know what you mean by "Is it possible to pay more tax in January for the prior year."?
For additional information about IRS penalties please refer to: Underpayment of Estimated Tax by Individuals Penalty
Yes - I want to adjust my w-4 now, so I will use 110% of the tax paid for 2023 as the estimate. Thanks for providing the criterion for me.
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