first time paying estimated tax

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
Topic Author
pkay
Posts: 171
Joined: Wed Jan 17, 2018 10:04 am

first time paying estimated tax

Post by pkay »

So far 2021, I've made a good chunk of money from our taxable brokerage account. DW and I have our full-time jobs where we do our regular tax withholdings. The taxable account doesn't have withholdings set up. I haven't dealt with this before, so am wondering if I should pay estimated tax for the first quarter of 2021 on the returns from the taxable account. Looking for pointers here. Thanks.
User avatar
BL
Posts: 9874
Joined: Sun Mar 01, 2009 1:28 pm

Re: first time paying estimated tax

Post by BL »

Since you have most of the year to do it, why not change the withholding to a higher amount to cover the amount due. It doesn't matter when it is withheld during the year, but it does for estimated payments.
plats
Posts: 515
Joined: Mon Dec 31, 2007 8:46 pm

Re: first time paying estimated tax

Post by plats »

Google "estimated taxes, safe harbor" or for example click here:
https://turbotax.intuit.com/tax-tips/sm ... /L3OPIbJNw
User avatar
FiveK
Posts: 15742
Joined: Sun Mar 16, 2014 2:43 pm

Re: first time paying estimated tax

Post by FiveK »

If you can adjust your withholding amounts to reach any of the safe harbor rules (in other words, if you are not one "Who Must Pay Estimated Tax"), then no estimated tax payments are needed.
Topic Author
pkay
Posts: 171
Joined: Wed Jan 17, 2018 10:04 am

Re: first time paying estimated tax

Post by pkay »

thank you all for the quick response.
Post Reply