estimated tax payments

[TinyFish]

Does anyone understand how to make an estimated tax payment on a one-time gain? The FishGiver and sold some stock recently and I know we will end up owing big time unless we pay the tax on it now. I found some forms online, but they seemed more aimed at people with businesses, not for a one-time kinda thing. Is there a way I can just send them 30% of the dang money and be done with it until April! LOL

I usually think I'm pretty financially savvy, but some tax things are made so difficult! All I want to do is pay my fair share.

-TinyFish

[poundwise]

Re: estimated tax payments


I don't know if this will help you or not, but you may want to review this article:

http://www.fool.com/school/taxes/taxes35.htm

Also, for paying the estimated tax, I highly recommend the EFTPS system.

You can find more details about these things from the IRS web site; look for publication 505.

[greedy4chips]

Re: estimated tax payments

how did you do your taxes last year? If you did them with tax software then just go in and change your income to reflect the one time gain. The difference in what you owe is your one time gain estimated tax.

I used a very similar method when I traded stocks and it never failed me. If you are afraid to be short then just add 5% to the amt to cover a higher tax bracket problem. Also, penalties and interest may be small enough to not warrant any concern on your part depending on the amt of the one time gain.

[TinyFish]

Re: estimated tax payments

Poundwise posted a reply and sent me a link, but I don't see the reply and link here anymore! Not sure what happened there!

Anyhow, the link was VERY helpful, Poundwise.

I guess my issue isn't so much estimating the tax (though it is tricky enough because it is ESPP stock), as doing the paperwork. All the stuff I found online looked like you pretty much had to do all your documentation for the year with the payment...bleeeaaaah. I wanna just 'send em the money', and your link's tip about the W4 was just what I needed. Thank you! Thank you! Thank you!

And thanks to the other responders too!

-TinyFish