I made estimated tax payments last year by calculating 110% of the tax owed. I then made sure to make quarterly payments by following the formula/advice given to me last year:
https://ttlc.intuit.com/community/taxes/discussion/re-how-to-calculate-estimated-tax-payments/01/304...
By doing so, I did not owe any underpayment penalties this year and we DID sell stock so we owed additional capital gains taxes. It doesn't look like I have to pay any interest (penalties) on our additional tax owed either. However, I saw somewhere that I could incur interest if I do NOT estimate in the taxes owed for capital gains throughout the year. Is this true??
If so, what do I need to do to calculate my estimated taxes for this year?
And, if not, can I follow the same formula that I did last year, to pay my estimated taxes? The quarterly taxes I paid were NOT equal amounts. I noticed that TurboTax has given me an estimate in taxes as well - and they are all equal amounts that seem to be a lot higher than what my formula estimates. Do the quarterly tax payments need to be equal amounts?
What is the correct way to make the estimated tax payments, and will I incur any interest penalties if I do not account for additional capital gains throughout the year?
