#estimated

Estimated taxes after capital gain and safe harbor rule

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Estimated taxes after capital gain and safe harbor rule Hey all, I work a regular W-2 job, and had a $100k realized capital gain in November 2024. Based on my rough math, I will ultimately owe about $25k in federal taxes on this. It’s my first time dealing with estimated taxes/safe harbor rule, so just trying to confirm whether my understanding is correct. I realize I will need to figure this out for…

Reddit Personal Finance 539 2025-01-13

IRS sent me my expected refund plus my estimated payment then penalized me for not paying the taxes due?

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IRS sent me my expected refund plus my estimated payment then penalized me for not paying the taxes due? This is bizarre. We have a small business and we just now filed our taxes for 2020 but we made an estimated payment of $100,000 on time in April of 2021. Today the IRS send me the refund of $57,460.00 plus our estimated payment of $100,000. Then 4 days later we got an IRS letter saying we owed a $7,000.00 in penalties based on the unpaid taxes f…

Reddit Personal Finance 365 2024-11-01

Question about estimated tax

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Question about estimated tax I am a W-2 employee who has been investing for the past couple of years and now make enough money on the side that I should probably be paying taxes quarterly. Reading through the Form 1040-ES has been confusing and I’ve begun to question whether or not it’s really for me. What I mean by this is that the majority of my taxes are taken out normal…

Reddit Personal Finance 746 2024-06-09

We did an oopsie and over-estimated our FSA needs

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We did an oopsie and over-estimated our FSA needs For context, we recently welcomed our second child into the world. To plan for this, we maxed out our FSA, since we were hit with a sizeable bill when we had our first. The insurance we have now isn’t as good and we constantly joke that “the crappy insurance strikes again” when they refuse to cover an eligible expense. Well, our delivery seems t…

Reddit Personal Finance 804 2023-11-15