w-4 withholding

yanarthur — Wed, 11 Feb 2026 09:17:42 GMT

It is hard to estimate the additional tax holding with stock gain/loss more than expected. Is it possible to pay more tax in January for the prior year so that I won't be penalized for paying too little tax? If so, what is the process? Thanks.

Re: w-4 withholding

JohnB5677 — Wed, 03 Apr 2024 17:22:34 GMT

You're right, trying to plan your taxes when you have capital gains is a challenge.

The easiest way for you to play it safe is if:

You pay 100% of your 2023 taxes, (110% for higher incomes).
If your previous year's adjusted gross income was more than $150,000 you will have to pay in 110% of your previous year's taxes to satisfy the "safe-harbor" requirement.

I don't know what you mean by "Is it possible to pay more tax in January for the prior year."?

But yes, if you think there will be a shortfall in your tax payment
- You can make a larger single payment by April 15th 2024'
- Or you can break it into 4 equal payments.
You can have TurboTax prepare payment vouchers.
- It sounds like you tried to prepare your W-4
- You can use the Capital Gains from 2023 for your estimate.
- If you had a loss, I would not include it.
Or you can setup an account and pay directly to the IRS Direct Pay With Bank Account

For additional information about IRS penalties please refer to: Underpayment of Estimated Tax by Individuals Penalty

Re: w-4 withholding

yanarthur — Wed, 03 Apr 2024 17:34:20 GMT

Yes - I want to adjust my w-4 now, so I will use 110% of the tax paid for 2023 as the estimate. Thanks for providing the criterion for me.

topic w-4 withholding in Get your taxes done using TurboTax

w-4 withholding

Re: w-4 withholding

Re: w-4 withholding