Does anyone happen to know if I need to pay quarterly estimated taxes on short term gains (from sale of stock options) or do I have the option to do it all at once when I file my 2007 taxes in April? Are there penalties if I wait?
2007-10-25 08:21:49 · 4 answers · asked by Amy P 1 in Business & Finance ➔ Taxes ➔ United States
If your withholding is enough to cover your 2006 tax due AND 2006 taxes were for a full 12 month period you do not need to pay an estimated tax.
2007-10-25 08:31:46 · answer #1 · answered by don_sv_az 7 · 1⤊ 0⤋
If you wait and owe over $1000 in taxes when you file, you can be penalized for underwithholding. If you expect to owe less than $1000, or if your withholding for the current year is at least what your total tax liablity for last year was, you can wait and won't be penalized.
2007-10-25 08:55:05 · answer #2 · answered by Judy 7 · 3⤊ 0⤋
It depends on the amount of your short term gains and how much tax you had withheld from any salary that you earned.
2007-10-25 10:48:53 · answer #3 · answered by Steve 6 · 0⤊ 0⤋
Fill out (but do not file) Form 1040-ES. It will tell you how much, if anything, you must pay in estimated taxes. You can download this form from http://www.irs.gov/pub/irs-pdf/f1040es.pdf (first time filers), http://www.irs.gov/pub/irs-pdf/f1040esn.pdf (non-resident aliens), or http://www.irs.gov/pub/irs-pdf/f1040ese.pdf (all others), if you do not have one.
2007-10-25 09:42:45 · answer #4 · answered by StephenWeinstein 7 · 0⤊ 0⤋