Capital gains

[DJS22]

I will need to file capital gains this year. Although under the $250k, I sold my residence before the 2 years. It says I need to file a 1040-ES. Since this is an estimated tax, is there a form to follow so you can figure out what amount you need to send?

[DavidT0202]

Hi @DJS22 

Congratulations on selling your home.  

The IRS has Guidance HERE just for you case.  

How To Figure Your Estimated Tax You will need:

• The 2022 Estimated Tax Worksheet,

• The Instructions for the 2022 Estimated Tax Worksheet,

• The 2022 Tax Rate Schedules, and

• Your 2021 tax return and instructions to use as a guide to figuring your income, deductions, and credits (but be sure to consider the items listed under What's New, earlier).

Matching estimated tax payments to income.

If you receive your income unevenly throughout the year (for example, because you operate your business on a seasonal basis or you have a large capital gain late in the year), you may be able to lower or eliminate the amount of your required estimated tax payment for one or more periods by using the annualized income installment method. See chapter 2 of Pub. 505 for details.

All of these items you will need can be found in the link about.  

Thank you for using TurboTax!