Thank you for your question. I would use these two resources to help you plan for the long-term capital gain as part of your income for 2024:
TurboTax Calculators:
TurboTax's W-4 Calculator
TurboTax's Tax Caster tax calculator
Assuming you have a W-2 you can adjust for the extra income now, and avoid any underpayment. You can also make a fourth quarter estimated payment on 1/15/2025 to avoid any potential estimated tax penalty though with this single income event you may already meet the Safe Harbor Rule for estimated tax penalties, which is:
- You pay at least 90% of the tax you owe for the current year, or 100% of the tax you owed for the previous tax year (This rule is altered slightly for high-income taxpayers. If the Adjusted Gross Income (AGI) on your previous year’s return is over $150,000 (over $75,000 if you are married filing separately), you must pay the lower of 90% of the tax shown on the current year’s return or 110% of the tax shown on the return for the previous year.), or
- You owe less than $1,000 in tax after subtracting withholdings and credits
Be well and safe @Bissawo
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
