Should I file taxes for quarterly because I sold a rental property in April with capital gains, I think I need to pay taxes now

[green_n_y_pants]

how to file 1040-es

[Anonymous_ · Accepted solution]

You can avoid a penalty for underpayment if your withholding plus estimated tax payments equal or exceed 90% of your 2022 tax liability or your withholding and estimated tax payments equal or exceed 100% of your 2021 tax liability (110% if your 2021 adjusted gross income was more than $150K) or if the balance due on your 2022 tax is less than $1,000.

You can make estimated tax payments at:

https://www.irs.gov/payments

or enroll in EFTPS at:

https://www.eftps.com/eftps

[rjs]

If you sold the property in April you were supposed to have made the estimated tax payment by June 15. You can still make the payment now, but you might incur some penalties and interest because the payment is late.

Withholding is treated differently than estimate tax payments. Withholding is treated as though you paid it evenly throughout the year, even if you pay it all in December. So if you have an income source that you can have extra tax withheld from to cover part or all of the tax on the sale, instead of making a late estimated tax payment, that could reduce or eliminate any penalties and interest. But with less than two months left in the year it might be difficult to find a way to produce enough withholding.