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Level 2
posted Feb 1, 2021 3:09:22 PM

estimated tax payments

I have enough withholding from my W2 to cover my earned tax liability.  I often get capital gain and dividend distributions  in December that put me into owing taxes.  It usually is more than the 90% rule allows.  Can I just make one estimated tax payment in Jan to cover the liability or will I be penalized for not paying 4 equal estimated tax payments?  Thanks

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1 Best answer
Level 1
Feb 1, 2021 3:58:20 PM

Yes, you can skip quarterly estimated tax payments altogether or just make a singe payment and not be liable for underpayment penalties  if you have enough withholding during the year.

 

You can learn ore about the estimate tax payments here:  

 

Estimated Taxes: Common Questions

2 Replies
Level 1
Feb 1, 2021 3:58:20 PM

Yes, you can skip quarterly estimated tax payments altogether or just make a singe payment and not be liable for underpayment penalties  if you have enough withholding during the year.

 

You can learn ore about the estimate tax payments here:  

 

Estimated Taxes: Common Questions

Level 2
Feb 1, 2021 5:36:45 PM

You are my hero!