Estimated Taxes on Capital Gains

If I have a substantial gain in 2025, can I avoid paying quarterly payments and just pay the taxes due in 2026, if I received a federal and state refund for 2024? Will I have to pay a penalty?

posted

Most probably.

You'll need to have 0 tax liability in 2024 to avoid the underpayment penalty.

Having a refund does not necessarily mean that you have 0 tax liability. It means that your tax withheld and estimated taxes paid are more than your tax liability.

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