Estimated tax for fourth quarter only?

[MaggieC1]

I recently sold some stock and made a significant gain.  Thus far this year, I have not made any quarterly estimated tax payments.  Is it possible to make a payment for fourth quarter only?  Also, I did some smaller scale transactions earlier in the year.  Is it possible to make a single payment for the entire year, in order to avoid penalties?

[DoninGA]

It is only possible to make a 2020 fourth quarter payment.  The payment must be paid on or before January 15, 2021 for fourth quarter 2020.

Go to this IRS payment website to make an estimated tax payment for 2020 - https://www.irs.gov/payments

[VolvoGirl]

If you don't want to pay online you can print out the 4th quarter  1040ES slip to mail a check.  Here are the blank Estimates and instructions…..

http://www.irs.gov/pub/irs-pdf/f1040es.pdf

Do you know how much you want to send in?

[MaggieC1]

I can make an educated guess on how much I owe for Q4.  So do I just put that amount on the coupon and submit it?

[VolvoGirl]

Yes!  And include a check for it.  Put your ssn and 2020 1040ES on the check.  Then don't forget to enter it when you file 2020 to get credit for it.

To enter Federal or State Estimated Taxes Paid, including a state estimated payment made in January for the prior year, go to

Federal on left or at top.  Personal (Home & Business)

Deductions and Credits at top

Then scroll way down to Estimates and Other Taxes Paid

Estimated Taxes - click the start button

[MaggieC1]

When calculating what tax we owe for Q4, is it appropriate to use 1/4 of the standard deduction to figure out our earnings?  We're both retired, so our income is based on a pension and Social Security, all of which come to us monthly on a consistent basis.  Wondering if the standard deduction should be treated the same way.

Thanks for your help - it's been very useful!

[Bees]

You can estimate tax for the quarter but it will be considered as part of your yearly income 

https://www.nerdwallet.com/article/taxes/capital-gains-tax-rates

https://turbotax.intuit.com/tax-tips/small-business-taxes/estimated-taxes-common-questions/L1luHqVdl

https://www.irs.gov/forms-pubs/about-form-2210