When you have a transaction
, such as stock sale, that does not have tax withheld either there will have to be additional withholding on other items or you will make an estimated
site with information on estimated payments is at
"If you did not pay enough tax throughout the year, either through withholding or by making estimated tax payments
, you may have to pay a penalty for underpayment of estimated tax. Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits
, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return
for the prior year, whichever is smaller."
If you are filing
as an individual
, you should use Form 1040-ES
, Estimated Tax for Individuals, to figure and pay your estimated tax.
can be used to help calculate your estimated tax.
For example, see https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/Estimated-Taxes--How-to-Determine-What-to-Pay-and-When/INF12007.html
"You can use TurboTax tax preparation software
to do the calculations for you, or get a copy of the worksheet accompanying Form 1040-ES and work your way through it. Either way, you'll need some items so you can plan what your estimated tax payments should be:
•Your previous year's return. Use your previous year's federal tax
return as a check to make sure you include all the income
you expect to take on your current year's tax return. You should also look at the total tax you paid if you are going to base your estimated tax payments on 100 or 110 percent of your previous year's taxes."
Usually there will also need to be additional withholding or estimated tax for states
that do collect an income tax in addition to the federal
Please ask if you need clarification.