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Level 1
posted Mar 19, 2025 4:08:06 PM

Estimated Quarterly Tax Payment for 2025

A primary residence is sold 2024 which significantly increase the taxable income for that year.  No similar windfall income is anticipated for 2025.  Am I required to make extremely large quarterly payments in 2025 based on my unusual 2024 income situation (the sale of a primary residence)? 

0 2 3910
2 Replies
Level 15
Mar 19, 2025 4:10:25 PM

No, if your 2025 tax return will not include an unusually large amount of taxable  income there is no need to file estimated taxes for tax year 2025.

Expert Alumni
Mar 19, 2025 4:12:44 PM

No, you need to pay in 100% or your previous year's tax or 90% (110% if income over $150,000/$75,000 MJ or single filer) of the current year's tax on a quarterly basis to avoid a penalty for late payment of tax. So, you can go off of this year's lower income to determine your estimated payments if any.