Hello:
TurboTax now has a great investment/capital gains tax calculator:
https://blog.turbotax.intuit.com/income-and-investments/capital-gains-tax-calculator-48615/
This is a simple tool to help with your gain/loss calculations.
Yes you are correct on the IRS - however; there are two methods:
The requirements are that you pay:
- 90% of the tax you owe for the current year. Estimate what you'll owe and pay at least 90% of this amount by making timely quarterly estimated tax payments or through paycheck withholding.
- 100% (or 110%) of last year's tax bill. Pay 100% of the tax shown on your prior-year tax return before applying estimated payments, withholding, or refundable tax credits. If your adjusted gross income is more than $150,000 (or $75,000 if you're married and file a separate return from your spouse), the safe harbor is 110% of your prior-year tax.
- https://turbotax.intuit.com/tax-tips/irs-letters-and-notices/guide-to-irs-tax-penalties-how-to-avoid...
As far as California:
Generally, you must make estimated tax payments if you expect to owe at least $500 ($250 if married/RDP filing separately) in tax for 2022 (after subtracting withholding and credits) and you expect your withholding and credits to be less than the smaller of:
- 90% of the tax shown on your 2022 tax return; or
- 100% of the tax shown on your 2021/2022 tax return including Alternative Minimum Tax (AMT).
Have an amazing day. Evelyn M (CPA 20+ years)
I would love a thumbs up 🙂 + Mark the post that answers your question by clicking on "Mark as Best Answer"
