In December 2021, received $1.572 million in deposits from sale of stock of a business I owned long-term. 2020 net income <$35k, and expect similar income (aside from the $1.572M) in 2021. Prepaid $70k fed and $12k IL estimated tax to try to avoid underpayment penalties. How much should I expect to pay in capital gains in 2021, federal and state (IL income tax rate is 4.95%), and how far off is my estimate fed and state capital gains estimate? Also, do you recommend your option for a TT pro to prepare this return, or an outside pro? Always did it myself before.
I currently receive $1.8k social security/month. Would that change as a result of cash I received?
