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posted Jul 14, 2020 10:20:45 PM

Prepay for 2020 after sold property with huge gain in 2019?

I sold my property last year (2019) with a huge capital gain, so my total "income" jumped quite a bit in the 2019 tax year. TurboTax gave me four 1040ES for 4 hefty prepayments for 2020. I am pretty sure I won't make that much money again in 2020 since house is sold, do I still need to make all the prepayments? I assume I will owe more than $1000 but nowhere near as much as the 1040ES stubs told me to pay. What should I do to avoid penalty? Please advise. Thanks. 

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1 Replies
Not applicable
Jul 15, 2020 1:16:27 AM

to avoid penalties your Federal estimates must cover 90% of your 2020 tax since your income will be way down.  state, if applicable may be different.

 

 

various versions of TT have a section where you can input your estimated 2020 income to calculate the 2020 tax.