How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask emc011075 Your Own Question
emc011075
emc011075, Master Tax Adviser
Category: Capital Gains and Losses
Satisfied Customers: 2932
Experience:  Master Tax Adviser and Enrolled Agent
62958156
Type Your Capital Gains and Losses Question Here...
emc011075 is online now
A new question is answered every 9 seconds

Do I risk a financial penalty if I elect to pay capital gains

Customer Question

Do I risk a financial penalty if I elect to pay capital gains tax April 15, or must I begin paying an estimated tax during the year prior to the April 15 deadline
Submitted: 2 years ago.
Category: Capital Gains and Losses
Expert:  emc011075 replied 2 years ago.
Hi. My name is ***** ***** I will be happy to help you.
The main purpose of estimated payments is to prepay your taxes to avoid underpayment penalty. You don't have to make any estimated payments as long as you pay 90% of your current year tax liability OR 100% of your last year tax liability by end of December. So, if you usually get a refund, you probably don't have to pay estimated payments. You can pay the 10% of your taxes by April 15th without penalty.
How much of capital gains do you expect?

Related Capital Gains and Losses Questions