topic I recently sold some stocks, do I need to pay capital gains right away or can I wait until this years taxes get filed in the spring? If I need to pay them now, how do I? in Investors & landlords

I recently sold some stocks, do I need to pay capital gains right away or can I wait until this years taxes get filed in the spring? If I need to pay them now, how do I?

jproffer183 — Sat, 14 Nov 2020 14:29:33 GMT

Re: I recently sold some stocks, do I need to pay capital gains right away or can I wait until this years taxes get filed in the spring? If I need to pay them now, how do I?

xmasbaby0 — Sat, 14 Nov 2020 14:39:14 GMT

You will enter your 1099B when you prepare your 2020 tax return.

Re: I recently sold some stocks, do I need to pay capital gains right away or can I wait until this years taxes get filed in the spring? If I need to pay them now, how do I?

Critter-3 — Sat, 14 Nov 2020 15:18:41 GMT

An estimate may be needed ...

What are estimated taxes?

https://ttlc.intuit.com/replies/3301588

Do I need to make estimated tax payments to the IRS?

PAYING ESTIMATES
For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% for 2015  SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.

You must make quarterly estimated tax payments for the current tax year (or next year) if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.

- 2. You expect your withholding and credits to be less than the smaller of:
    90% of the tax to be shown on your current year’s tax return, or
  100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)

https://ttlc.intuit.com/replies/3301891

How do I make estimated tax payments?

https://ttlc.intuit.com/replies/3301258

Re: I recently sold some stocks, do I need to pay capital gains right away or can I wait until this years taxes get filed in the spring? If I need to pay them now, how do I?

jproffer183 — Sat, 14 Nov 2020 15:51:50 GMT

Thank you!

Re: I recently sold some stocks, do I need to pay capital gains right away or can I wait until this years taxes get filed in the spring? If I need to pay them now, how do I?

Hal_Al — Sun, 15 Nov 2020 12:40:49 GMT

Simple answer: you can wait until you file your taxes to pay.

There is usually no penalty for under paying your income tax, in a situation where your taxable income increased from the previous year.

Technically the rule is: You should make estimated tax payments for the current tax year if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
- 2. You expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your current year’s tax return, or 100% of the tax shown on your prior year’s tax return.