@crsintexas wrote:
I am retired and have not had to pay taxes for the last three years. This year I sold mineral royalties for
$230,000.00. Can you tell me what my taxes will be and should I pay estimated tax to avoid penalties?
You can avoid the penalty for underpayment of estimated tax if you owe less than $1,000 in tax for 2019, or if you pay at least 90% of the tax owed for 2019 or 100% of the tax shown on your return for 2018, whichever is smaller.
In sum, you would not be required to pay estimated taxes if you had no tax liability for the last year.
See https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes
You can use the site below to estimate your income tax liability based upon your royalty and other income.
https://turbotax.intuit.com/tax-tools/calculators/taxcaster/
