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Get your taxes done using TurboTax
I have the same problem. in 2024 I had a windfall from the sale of a home. This year, 2025, I should owe less than I did the previous year. Turbo Taxes 1040ES calculations assume you have the same capital gains every year. What if they spike up one year and come back down. But more importantly, you still need to pay some estimated taxes.
Can I just skip one or two of the payments, and assuming that the final total comes close to what I would owe (without a big windfall) would that work in terms of avoiding penalties for underpayment?
Eg., Lets say I had $60 in ordinary income (salary) , taxes withheld, but I have $30K in interest and $60 K in qualified dividends which are not withheld. I will still owe taxes on the $90 at the end of the year, so I want to withhold - 20% or so. which would be $18K, instead of doing it as 18/4= 4.5K 4 times a year, I could pay 2 payments of $9. Right? How does the IRS even know ahead of time? Its not like RMD's where you know how much you are going to distribute, and can have the brokerage withhold it for you.
Where is that IRS calculator?