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Level 1
posted Jun 18, 2019 9:49:25 AM

Estimated payments from stocks sold unexpectedly

My only income for 2019 is from an unexpected sale of stocks from a company that went private and bought all of the public shares.  Do I need to pay estimated taxes on the proceeds?

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1 Replies
Level 15
Jun 18, 2019 1:11:24 PM


@nomadicmike wrote:

Do I need to pay estimated taxes on the proceeds?


You actually only have to worry about a penalty for underpayment.

 

However, you can avoid the penalty if you owe less than $1,000 in tax for 2019, or if you pay at least 90% of the tax owed for 2019 or 100% of the tax shown on your return for 2018, whichever is smaller

 

See https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes