You'll need to sign in or create an account to connect with an expert.
You are taxed on capital gains in the year that you disposed of (sold) the stock. You will report the sales price minus cost basis on your 2017 return, and pay tax then.
Take the tax you paid in the previous year (in your case, 2016). Calculate 90 percent of the tax you estimate you will owe in the current year (2017). Compare the two, and take the smaller number.
For example, you paid $500 as tax the previous year. This year you estimate you will pay $1,000, and 90 percent of that is $900. The smaller of the two numbers is $500.
Now compare the total of any withholdings and credits you may have to this number.
If you expect to owe at least $1,000 in taxes, after all deductions and credits, AND your withholding and credits are expected to be less than the calculated number — in this example $500 — then you should file 1040-ES.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
sevens777
New Member
Franklin Bluth
New Member
gtalbott1
New Member
Jaaayyy23
New Member
KA52402
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.