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!
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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.
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.
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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