- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I received $50,000 long term capital gain after I sold stock. I paid no federal tax last year. Do I need to deposit tax in 2016 to avoid paying a penalty in April 2017?
The stock was sold in April of 2016. My only income is Social Security. No tax was withheld from the sale.


Accepted Solutions
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I received $50,000 long term capital gain after I sold stock. I paid no federal tax last year. Do I need to deposit tax in 2016 to avoid paying a penalty in April 2017?
If your 2015 income tax liability last year was really $0, you were a U.S. citizen or resident for that entire year and your last year tax covered a 12-month period then you do not need to make estimated tax payments. You can wait and send in your 2016 income tax with your 2016 income tax return. You are in one the "safe harbors" for avoiding an underpayment penalty.
Tom Young
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I received $50,000 long term capital gain after I sold stock. I paid no federal tax last year. Do I need to deposit tax in 2016 to avoid paying a penalty in April 2017?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I received $50,000 long term capital gain after I sold stock. I paid no federal tax last year. Do I need to deposit tax in 2016 to avoid paying a penalty in April 2017?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I received $50,000 long term capital gain after I sold stock. I paid no federal tax last year. Do I need to deposit tax in 2016 to avoid paying a penalty in April 2017?
<a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/tax-tools/calculators/taxcaster/">https://turbotax.intuit.com/tax-tools/...>
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I received $50,000 long term capital gain after I sold stock. I paid no federal tax last year. Do I need to deposit tax in 2016 to avoid paying a penalty in April 2017?
If your 2015 income tax liability last year was really $0, you were a U.S. citizen or resident for that entire year and your last year tax covered a 12-month period then you do not need to make estimated tax payments. You can wait and send in your 2016 income tax with your 2016 income tax return. You are in one the "safe harbors" for avoiding an underpayment penalty.
Tom Young
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I received $50,000 long term capital gain after I sold stock. I paid no federal tax last year. Do I need to deposit tax in 2016 to avoid paying a penalty in April 2017?
For 2016, SS is no longer your only income. . Social security only becomes taxable when added to sufficient other income. For 2016, you do have "sufficient income". Since you are required to file a tax return, you do need to enter your SS in Turbotax (TT). TT will determine the taxable portion, most likely 85% of it.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I received $50,000 long term capital gain after I sold stock. I paid no federal tax last year. Do I need to deposit tax in 2016 to avoid paying a penalty in April 2017?
Still have questions?
Make a post