@Stevehofwa wrote:
So if I pay 110%(agi higher than 150k) of last years taxes or 90% of this years sometime during the year am I safe?
CORRECTED ANSWER
Yes, you are safe (from an underpayment penalty) if your total payments for 2023 are at least 110% of your 2022 tax or 90% of the final tax on your 2023 tax return.
@Stevehofwa wrote:
Some of the gains are offset by losses from the previous year, so the gain is less than initially reported to the irs.
Your tax is based on the net gain for the year, after subtracting any capital loss carryover. You don't have to make a payment based on the gain from a sale if it will be offset by losses.
@Stevehofwa wrote:
Can I just increase withholding for the rest of the year, or if I’m in the safe harbor region can I wait until April 15th.
Yes, you can increase your withholding to cover the tax on the gain, instead of making an estimated tax payment. Unlike estimated tax, the timing of the withholding doesn't matter, as long as the total for the year is high enough.
You cannot wait until April 15 if you want to avoid an underpayment penalty.
