estimated tax

Hi:

Last year, I got refund from Fed and State tax. That was a normal year.

This year is different. My company was sold in Sept and it is now a private company. All my previous company stocks are sold. My gain is huge. But I do not know  how much the gain is since the calculation is complicated.

Do I need to pay additional tax by the end of the year so that there is no underpayment penalty?

I was told there are two rules:

• 90% of the amount of tax you will pay in total for the year; or
• 100% of the amount of tax you paid for the previous year.

 

So far, the Fed withhold is already more than what I paid for last year. 

But my estimation for this year's tax will be at least 3-4 times of last years'. 

Will I get underpayment penalty if I do not pay extra by the end of year? 

 

Thanks

 

 

 

所有跟帖： 

• As long as the withholding exceeded 110% -autumnjune- ♀ (454 bytes) () 12/27/2016 postreply 20:14:55

• Thanks for the info but that sounds really complicated .. -zzz123- ♂ (674 bytes) () 12/27/2016 postreply 20:52:19

• the company was sold in Sept, so it will be last quarter -guest917d- ♀ (171 bytes) () 12/28/2016 postreply 08:02:24