Big cap gain in 2024… How to handle 2025 estimated taxes?

General
21

@Bela
Thanks for the help!

22

If your 2025 estimated payments and withholdings are done on time and keep your balance under $1,000 when you file, you won’t have any penalties.

23

Reilly said:
If your 2025 estimated payments and withholdings are done on time and keep your balance under $1,000 when you file, you won’t have any penalties.

>If your equal, timely estimated payments and withholdings …

24

@Lior
Yes, timely means equal, that’s what I meant.

25

Reilly said:
If your 2025 estimated payments and withholdings are done on time and keep your balance under $1,000 when you file, you won’t have any penalties.

Just a heads-up, that rule only applies to withholding, not estimated tax payments.

26

Reilly said:
If your 2025 estimated payments and withholdings are done on time and keep your balance under $1,000 when you file, you won’t have any penalties.

I wish I only owed under $1,000 in taxes. No such luck for me.

27

@Mai
That’s not what they meant at all.

It seems like you’re guessing instead of reading carefully.

28

Brian said:
@Mai
That’s not what they meant at all.

It seems like you’re guessing instead of reading carefully.

My first comment was based on some Google searches, not what people here were saying. Should have mentioned that, sorry.

29

@Mai
If your 2025 prepayments are at least 90% of 2025’s tax, or within $1,000 of the total, you won’t owe penalties.

Does that clear up the confusion from Google? You see how 2024 doesn’t factor in here?