My 2021 income from work has decreased around 30% compared to 2020, but in 2021 I took huge profits from stock trading compared to 2020.
Therefore, my current withholding has decreased in 2021, but expected taxable income would be much higher in 2021 compared to 2020.
I have plan to make an estimated tax payment, and here are questions for how much I should pay.
1) Should I pay the difference between the expected 2021 tax withholding from my paycheck and 2021 expected tax?
2) May I pay just the difference between the expected 2021 tax withholding from my paycheck and 110% of actual 2020 taxes?
If I choose option 2, there is huge difference from 2021 expected tax, so I am worried I may have tax penalty due to too little tax withholdings in 2021.
