We sold out house and have a capital gains for 2024. Do we need to make an estimated tax payment in 2023 in anticipation of the tax on that gain? If yes, how much?

[VincentL12345]

You have two options for making estimated payments: You can make a single payment for the year by the April deadline or divide up what you owe into four payments.

If you choose the four-payment option, you’ll make three payments in 2023—April 18, June 15 and Sept. 15—and one in 2024 by Jan. 16.

FOR INCOME EARNED BETWEEN	YOUR ESTIMATED TAX PAYMENT IS DUE
Jan. 1 to March 31, 2023	April 18, 2023
April 1 to May 31, 2023	June 15, 2023
June 1 to Aug. 31, 2023	Sept. 15, 2023
Sept. 1 to Dec. 31, 2023	Jan. 16, 2024

The easiest way to calculate when you owe is to use Form 1040-ES: Estimated Tax for Individuals. 

You can avoid IRS penalties by making estimated payments totaling the lesser of these two amounts:

• At least 90% of your tax liability for the current year, or
• 100% of your tax bill for the previous year (110% for those with an adjusted gross income of $150,000 if filing jointly or $75,000 if filing single or married filing separately)