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LP1968
Level 3

Quarterly Estimated Tax Payments for Capital Gains

Hi. I'd like to clarify an important detail about the exact amount to pay for Quarterly Estimated Tax Payments for Capital Gains. 

 

Lets say I have $40,000 of long-term capital gains in Q1 2021, and my federal tax due is exactly $6,000 (i.e. 15% of  $40,000). 

 

do i need to pay IRS all $6,000 by April 15th? or can i pay only $1,500 by April 15th, and then $1,500 in each of the 3 remaining Quarterly Estimated Tax Payment dates?  

 

 

Also, lets also say I am a CA resident. so, there is another $4,0000 (i.e. 10%) in CA-state tax.  do i need to pay CA FTB all $4,000 by April 15th or i can pay only $1,200 (30%) now, and the rest according to remaining Quarterly Estimated Tax Payment requirements stated in https://www.ftb.ca.gov/pay/estimated-tax-payments.html

 

 

Please advise! Thanks! 

1 Best answer

Accepted Solutions
JoannaB2
Expert Alumni

Quarterly Estimated Tax Payments for Capital Gains

Yes.  The estimated payments or quarterly payments (1040 ES) are divided into 4 quarters. The 1st payment is still due on  4/15/2021, 2nd on 6/15/2021, 3rd payment is due 9/15/2021, and the last quarter payment is due on 1/15/2022.  You can access the IRS website to make your quarterly payments.

 

State of California quarterly or estimated payments (540 ES) are divided into 3 payments.  The 1st payment (30% of tax liability) is still due on 4/15/2021, 2nd payment (40% of tax liability) is due 6/15/2021, no payment on 3rd quarter, and the last payment (30% of tax liability) is due on 1/18/2022.  You can send the payment to FTB online or by mall.

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2 Replies
Carl
Level 15

Quarterly Estimated Tax Payments for Capital Gains

Lets say I have $40,000 of long-term capital gains in Q1 2021, and my federal tax due is exactly $6,000 (i.e. 15% of $40,000).

Then the tax on that gain realized in 2021, as a quarterly tax payment would be due to the IRS by Apr 15th.

Also, lets also say I am a CA resident.

Pretty much the same applies for CA state taxes with the same quarterly due dates as the IRS has for federal taxes. See https://www.ftb.ca.gov/pay/estimated-tax-payments.html for more guidance.

 

 

 

 

 

 

 

JoannaB2
Expert Alumni

Quarterly Estimated Tax Payments for Capital Gains

Yes.  The estimated payments or quarterly payments (1040 ES) are divided into 4 quarters. The 1st payment is still due on  4/15/2021, 2nd on 6/15/2021, 3rd payment is due 9/15/2021, and the last quarter payment is due on 1/15/2022.  You can access the IRS website to make your quarterly payments.

 

State of California quarterly or estimated payments (540 ES) are divided into 3 payments.  The 1st payment (30% of tax liability) is still due on 4/15/2021, 2nd payment (40% of tax liability) is due 6/15/2021, no payment on 3rd quarter, and the last payment (30% of tax liability) is due on 1/18/2022.  You can send the payment to FTB online or by mall.

View solution in original post

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