first time paying estimated tax
first time paying estimated tax
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.
Re: first time paying estimated tax
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.
Re: first time paying estimated tax
Google "estimated taxes, safe harbor" or for example click here:
https://turbotax.intuit.com/tax-tips/sm ... /L3OPIbJNw
https://turbotax.intuit.com/tax-tips/sm ... /L3OPIbJNw
Re: first time paying estimated tax
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.
Re: first time paying estimated tax
thank you all for the quick response.