Vacation home sale

[John H5]

I just sold a vacation home (closed Nov 7) with a $90k profit. My only income is social security (received all year) and spouse part time work with $10k earnings since September. We file jointly and have not paid any tax over the course of the year. Do I need to make a 4th qtr tax payment? From January until September I did not think we would have earned enough to pay taxes. Will this keep us from paying a penalty?    

[drc845443]

Hello there!

Based on the information you have provide, you will likely need to pay taxes in 2022.

I recommend using TaxCaster  to estimate your tax liability and using that to make your 4th quarter estimated tax payment.

 https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

You can avoid the underpayment of estimated tax if you have paid at least 90% of the tax shown on the return for the taxable year or 100% of the tax shown on the return for the prior year, whichever amount is less.