Hello Padilla,
Let me answer your first question first:
You will want to calculate your estimated quarterly profit and then your estimated taxes based and pay based on that estimate. You’re responsible for all of your FICA – Social Security and Medicare – along with income tax on your profit. FICA is going to be 15.3% and your income tax will be based on your overall taxable income bracket.
It is great that you are withholding more money from your Wages to cover the estimated taxes required for his income but it is crucial that you make correct estimated tax payments.
Determining what to pay and when is crucial to avoid penalties and interest on underpayment of tax. Here is a great resource on how to pay estimated taxes.
Now for your second question:
1) You should make an estimated tax payment based on the gain on sale of property. This is the same as having sold an inherited property in the USA. The difference here is that when you file your 2025 tax returns remember to take any Foreign tax credit for taxes paid on the sale of this inherited property in his birth country.
The thing to keep in mind about the foreign tax credit is that it is paid or accrued. Some countries do not have a calendar year for taxation reporting. So say the tax filing in the foreign country is not till after 4/15/26, and you do not pay the tax on this till the time of filing there, you can claim the taxes as accrued for 2025 tax year. To take the correct amount of tax, I would recommend filing an extension in the USA. After you file the tax return in his birth country, you would file the tax return in the USA.
One last thing on the inheritance, you will have to file Form3520 with the IRS, if the amount of inheritance exceeds $100,000.
Hope this helps!
Nisha
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