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loriagehring
New Member

We are retired. We sold some stock. Do we need to pay capital gain tax on it now to avoid penalties?

We sold a small amount of stock.  Do we need to pay the capital gain tax now?
4 Replies
Critter-3
Level 15

We are retired. We sold some stock. Do we need to pay capital gain tax on it now to avoid penalties?

Maybe ... look at last year's return ... 

Do I need to make estimated tax payments to the IRS?

https://ttlc.intuit.com/replies/3301891

 

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Mike9241
Level 15

We are retired. We sold some stock. Do we need to pay capital gain tax on it now to avoid penalties?

not enough information.  for some taxpayers, a small amount of capital gains could be taxed at 0% for federal purposes.    

 

2 safe harbors so no matter what your 2021 tax is there are no penalties for owing a substantial amount on 4/15/2022 

 

1) Withholding and timely estimated tax payments = 90% or more of your current year tax or
2) Withholding and timely estimated tax payment = 100% or more of your prior year's tax. The 100% increases to 110% if your prior year adjusted gross income is more than $150,000

Hal_Al
Level 15

We are retired. We sold some stock. Do we need to pay capital gain tax on it now to avoid penalties?

Try this tool https://turbotax.intuit.com/tax-tools/calculators/taxcaster/?s=1. Enter your regular income first to see the regular tax. Then add the sale to see the effect.
Enter the difference between the sale price and what you paid for it originally as a long term capital gain (LTCG).  Depending on how much total income you have LTCG are partially taxed at 0%, 15%, 20% and/or 23.8%.

loriagehring
New Member

We are retired. We sold some stock. Do we need to pay capital gain tax on it now to avoid penalties?

Thank you very much!  Very helpful!

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