Skip to main content
Level 4
September 11, 2025
Solved

Do I need to pay estimated tax for stock gains quarterly?

  • September 11, 2025
  • 1 reply
  • 90 views

I am not a stock trader (at least I won't file my tax return as one who makes a living by trading stocks), so I will deal with short/long term capital gains for my trades this year.

Looking at my records, I actually have some gains for each of the third quarters so far:

Jan. 1 - March 31:   $2500 short term gain.  It's already too late to pay more estimated tax for this, but the tax amount is probably not significantly large.

June 1 - Aug. 31: $10000 short term gain.  I still have a few days before 9/15 to pay estimated tax for this.

Sept. 1 - Dec. 31 (up to Sept. 11 so far):  $64000 long term gain.  I have until 1/15/2026 for this.

 

I think my tax bracket is %24, so the federal tax I owe should be (2500+10000) * 0.24=3000 for first 8 months.

Looking at last year's federal tax return, I had a $7000 refund, and I may get similar refund without any capital gain this year.  That said, I don't have to pay any estimated tax for the capital gain in first 8 months of the year?  I am already paying estimated tax quarterly, and I guess I will meet the safe harbor this year.  However, I don't mind paying more estimated tax this quarter to be safe.

1. Any suggestion on federal tax? 

2. I live in California.  Do I need to do anything with franchise tax board?  No, I haven't never paid any estimated tax to the state.

3. People mentioned about form 2210 on the web.  Is that something I should check out now or only when I file my tax return next year? 

    Best answer by Mike9241

    there is a safe harbor that if you meet it avoids underpayment of estimated taxes even if you owe a fortune come next 4/15. this avoids the need to CALCULATE current year quarterly estimates. However, you could end up significantly overpaid 

     

    timely estimated tax payments and withholding = 100% of your 2024 tax. that 100% jumps to 110% if your 2024 adjusted gross income was $150K or more. you can use 1/4 of annual withholding for each period or use actual for every period

     

     

    other safe harbors 

    withholding 

    1) and timely estimated tax payments equal or exceed 90% of your 2025 tax or
    2) the balance due after subtracting taxes withheld from 90% of your 2025 tax is less than $1,000 or
    3) your total 2025 taxes are less than $1,000

     

     

    for states each has their own rules that should be checked 

    1 reply

    Mike9241
    Level 15
    Mike9241Level 15Answer
    Level 15
    September 12, 2025

    there is a safe harbor that if you meet it avoids underpayment of estimated taxes even if you owe a fortune come next 4/15. this avoids the need to CALCULATE current year quarterly estimates. However, you could end up significantly overpaid 

     

    timely estimated tax payments and withholding = 100% of your 2024 tax. that 100% jumps to 110% if your 2024 adjusted gross income was $150K or more. you can use 1/4 of annual withholding for each period or use actual for every period

     

     

    other safe harbors 

    withholding 

    1) and timely estimated tax payments equal or exceed 90% of your 2025 tax or
    2) the balance due after subtracting taxes withheld from 90% of your 2025 tax is less than $1,000 or
    3) your total 2025 taxes are less than $1,000

     

     

    for states each has their own rules that should be checked 

    Mike9241