topic Quarterly taxes if no annual tax due in Deductions & credits

Quarterly taxes if no annual tax due

252056 — Sun, 16 Nov 2025 18:50:18 GMT

I plan to sell appreciated stocks and incur capital gains tax in December. If I also make a charitable donation in December (with tax deduction equal to my calculated capital gains tax) do I still have to pay quarterly taxes for Q4?

In other words, do I owe quarterly taxes if I do not expect to owe annual taxes in April?

Re: Quarterly taxes if no annual tax due

Bsch4477 — Sun, 16 Nov 2025 20:53:31 GMT

No, no need to pay an estimated tax based on what you posted.

Re: Quarterly taxes if no annual tax due

NCperson — Sun, 16 Nov 2025 21:11:19 GMT

@252056 no, but I would model it out as you may have assumed something that won't occur.

For example, assume the tax on the capital gains is $15,000 and you file Single. If you are in the 22% tax bracket that would imply a charitable contribution of $68,000 to create a tax deduction that reduces taxes by $15,000.

Deductions do not reduce taxes dollar for dollar. Only tax credits can do that.

Re: Quarterly taxes if no annual tax due

252056 — Mon, 17 Nov 2025 00:06:56 GMT

Thanks for your responses.

Marginal tax rate 35%, filing jointly.

Charitable donation 150k approx 38-42k tax deduction per different calculators.

So theoretically this could neutralize $200k of federal capital gains tax right?

(15% LTCG + 3.8% NIIT x 200k = $37,600 capital gains tax)

Re: Quarterly taxes if no annual tax due

NCperson — Mon, 17 Nov 2025 00:40:08 GMT

@252056 yeah, the math should work

Are you at least 73 years old? try the math by doing a QCD.

Re: Quarterly taxes if no annual tax due

252056 — Mon, 17 Nov 2025 00:45:42 GMT

Under 73, planning to start a donor advised fund.