When do I pay taxes for capital gain on stocks? Is it by quarterly or once every year that you pay taxes for stocks?

[westswagger]

I have never paid my taxes in the quarters from before. (Haven't made any money stocks before, I usually sold them for a loss.) Is there a penalty if I wait to pay at the end of the year even though I sold now in the first quarter and made a gain?

[tagteam]

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@westswagger wrote:
Is there a penalty if I wait to pay at the end of the year even though I sold now in the first quarter and made a gain?

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From IRS Publication 505:

In most cases, you must pay estimated tax for 2021 if both of the following apply.

1. You expect to owe at least $1,000 in tax for 2021 after subtracting your withholding and tax credits.

2. You expect your withholding and tax credits to be less than the smaller of:

   1. 90% of the tax to be shown on your 2021 tax return, or

   2. 100% of the tax shown on your 2020 tax return. Your 2020 tax return must cover all 12 months.

   3. Substitute 110% for 100% in (b) above if your AGI for 2020 was more than $150,000 ($75,000 if your filing status for 2021 is married filing a separate return).

[Mike9241]

Exceptions to the Penalty - no estimates required for 2021 
You won't have to pay the penalty or file this form if either of the following applies.
• You had no tax liability for 2020, you were a U.S. citizen or resident alien for the entire year (or an estate of a domestic decedent or a domestic trust), and your 2020 tax return was (or would have been had you been required to file) for a full 12 months. (you must have filed a return)
• The total tax shown on your 2020 return minus the amount of tax you paid through withholding is less than $1,000. To determine whether the total tax is less than $1,000, complete Part I, lines 1 through 7.

if you don't meet the penalty exception based on the above you can also avoid penalties if

1) withholding and timely estimated tax payments are 90% of 2021 tax

or

2)  withholding and timely estimated tax payments are 100% of 2020 tax (110% % if 2020 AGI $150K or more) 

(substitute $75K if married filing separate)

25% must be paid each quarter 3/31/2021. 5/31/2020, 8/31/2021, 12/31/2021

however, the actual due dates for estimated tax payments are 4/15/2021, 6/15/2021, 9/15/2021 1/17/2022