@hmlow wrote:
Lastly, estimated taxes should be paid!
You simply want to avoid an underpayment penalty, which can be done as follows:
You may avoid the Underpayment of Estimated Tax by Individuals Penalty if:
- Your filed tax return shows you owe less than $1,000 or
- You paid at least 90% of the tax shown on the return for the taxable year or 100% of the tax shown on the return for the prior year, whichever amount is less.
