So we owed a LOT of taxes last year. I do NOT want to do the usual rule of paying 110% of last year's taxes for this year, because we won't owe nearly as much this year. We have had to pay $ every year for the past 4-5 years.
I used TT to estimate the taxes for this year, and it came out with an even amount to pay for all 4 payments. I already paid those amounts in April and June of this year. However, as I mentioned, we had a lot of capital gains in july, and so I reentered these newly modified amounts into TT. It gave me a MUCH larger amount to pay for Payments 3 and 4 (sept and jan '26).
I had also thought that the 4 payments were supposed to be "evenly" distributed in order to avoid a penalty. However @VolvoGirl mentioned that it doesn't matter?
If I adjust my 3rd and 4th payments to be the larger amounts to cover the capital gain in July, will I be avoiding the penalty?
I also understood that we can take more $ out of our paycheck, and that will be considered "evenly distributed". Unfortunately, we don't have enough in the paycheck to cover the capital gain taxes.
