Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
Typically when you file estimated tax return, you pay for the tax on the gain in the year of the actual gain
So does the 15% on the amount just get added to the amount of tax I estimate I will owe for the year, and I can spread that across the remaining quarters?
(which in this case is 2, Sep 15 and Jan 15)
Yes, the 15% adds for the year, but you pay the 15% in the quarter of the sale
you don't spread it
Is it the same for the state of New Jersey? 1 payment of the tax added from the sale in the quarter that I sold?
That is correct
Federal and state are the same
1 more extension - I know it would be easy and great to have the same quarterly payment each quarter
but my wife's income is variable (self employed), so I end up changing the estimate of how much she will make, and therefore how much we pay each quarter.
This is okay, right?
That is perfectly fine
that's why it's called "estimated' tax payments
Excellent. You have answered my question.
Thank you !
You're welcome. If you would, please rate my response as "excellent" so that I may receive credit for assisting you today
I was just making sure, since the form they provide always assume equal payments..