So here's a scenario question to see if I understand this all correctly:
-If I have no tax situations requiring estimated taxes Q1-Q3, and have a normal W-2 job making about $100k/yr that's been steady for years, but I come into an unexpected large investment income of say $1,000,000 during Q4. If I estimate 40% tax rate (Short term capital gains, + NIIT), that'd be an extra $400,000 in taxes.
-I pay the $400,000 in estimated taxes in Q4.
-Does this mean that no matter what I'll still be penalized for not paying $100,000 in each of Q1-Q3, even if I didn't have any money to do so until Q4?
