Should I pay capital gains now or next year’s tax return?
I recently sold lot of long term stocks from Meta at the highest price $490. My capital gains are 160k and with the highest capital gain tax bracket I expect 32k taxes owned. I am wondering if anyone ever did the safe harbor rule to pay capital gains at April of next year tax return instead of https://www.brightonjones.com/blog/estimated-tax-payments-safe-harbor-rule/ Rule states that if you pay this year 110% of last year’s taxes then you don’t get penalties for underpayment of taxes. Last year (2023) i had a W2 of 400k. This year I am expecting 700k (this is without the capital gains above). So I will pay in federal taxes in 2024 not only 100% but almost 200% of 2023 taxes amount. Anyone has used this rule? I am looking for a tax consultant also. Any recommendations appreciated here. Details for my salary: IC5 at Meta, back to back GE ratings and lucky at the current stock price.
Brighton Jones Wealth Management
Because of the huge jump in your W-2 wages, you’ll be paying at least 110% of your 2023 taxes, so you won’t have to pay estimated taxes. You’ll still have a large tax payment due on 15-April-2025, so make sure to set aside some money for that, but you shouldn’t get a penalty for not paying estimated taxes. Where are you located? These folks are recommended by a CPA friend: http://jwaddell.com/index.php They’re in Sacramento, which should work for Bay Area folks.