1) Yes, you can absolutely send in extra money via Quarterly Estimate Filing if your husband's business has been better in one quarter! The IRS understands that income from self-employment can fluctuate. You are not required to pay four equal installments. You can adjust your estimated payments throughout the year to reflect your actual income. If one quarter is significantly better, you can make a larger payment for that quarter to cover the increased income. It is generally recommended to calculate the amount more precisely to avoid underpayment penalties.
Use Form 1040-ES: This form helps you figure out the estimated tax payments. It includes a worksheet to calculate the amount. Estimated Taxes: How to Determine What to Pay and When
A Guide to Paying Quarterly Taxes
2) Yes, you likely need to account for the profit from the sale of the inherited foreign property in your Quarterly Estimated Tax filings for the current year. When your husband sold the inherited property, any profit he made above his "basis" in the property is considered a capital gain and is taxable in the U.S. If you wait until you file your 2025 tax return (due April 15, 2026), you could face an underpayment penalty if you haven't paid enough tax throughout the year through withholding and/or estimated payments. The IRS expects you to pay tax as you earn income.
@PadillaFam Thanks for the question!!
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