I will soon receive proceeds from the sale of a home. The short story, I will have to pay Capital Gains Tax. Since I am gaining this income during the final quarter of 2006 should and/or how can I pay this before the normal tax file time?
2006-10-10 04:02:45 · 5 answers · asked by auto 1 in Business & Finance ➔ Taxes ➔ United States
the due date for the last quarters estimated tax is Jan 15
form 1040es
2006-10-10 04:11:39 · answer #1 · answered by goldenboyblue 3 · 1⤊ 0⤋
You shouldn't need to pay an estimate as long as you've paid 100% of your tax liability from the prior year. Meaning, if you pay in the amount equal to your total tax liability due in 2005 (total tax paid, not how much you owed at 4/15) in 2006, then you shouldn't need to make an estimate. It wouldn't hurt to make one by Jan 15th, so you don't accidentally spend the money and not have enough to pay your liability at 4/15.
2006-10-10 04:44:50 · answer #2 · answered by sjoschko 3 · 1⤊ 0⤋
Pay by January 15, with note the income was earned in the last quarter - or file by then, with the same note.
The person who said that if you'd paid in an amount equal to your total tax for last year, you don't have to file estimated, is correct.
2006-10-10 08:08:22 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Check out the 'who must pay estimated taxes' part of this form/instruction - especially condition 2. http://www.irs.gov/pub/irs-pdf/f1040es.pdf - You may not need to pay estimated taxes and still not be penalized. If this was your main home you may exclude @250K ($500k if married) of gains. Check here under 'selling your home' http://www.irs.gov/pub/irs-pdf/p17.pdf
2006-10-10 04:43:34 · answer #4 · answered by curious george 5 · 1⤊ 0⤋
do retired individuals need to pay estimated tax payments
2015-08-15 18:31:00 · answer #5 · answered by Raymond 1 · 0⤊ 0⤋