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emc011075, Master Tax Adviser
Category: Capital Gains and Losses
Satisfied Customers: 3174
Experience:  Master Tax Adviser and Enrolled Agent
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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?