Hal_Al
Level 15

Get your taxes done using TurboTax

Q. Does one have to pay estimated taxes for capital gains? I have a large amount of capital gains for the first quarter of 2022, am  I need to pay estimated taxes on them?

 

A. Simple answer: No, that is not required.  However, you might be subject to an underpayment penalty if you were "short".  Usually, if you are currently withholding federal  tax at a rate equal to last year's tax, there will be no penalty, even if you owe a hugh amount at tax time.  See @MayaD 's reply for details.