Submitted By: someone
Answered: September 11, 2017 11:41 pm

I used the 100% safe harbor to figure my estimated tax for 2017 but recently had a big stock sale. Do I need to recompute my remaining estimated tax payments?

If you rely on the 100% safe harbor (basing your 2017 estimates on 100% of your 2016 tax liability), you do not have to make adjustments during the year for any changes in income. However, as a practical matter, be prepared to pony up the unpaid taxes on your increased income. It may be advisable to increase remaining estimates so you don’t have a big payment when you file your return. It’s entirely up to you.

advertisement
Tax Glossary

Joint tenants

Ownership of property by two persons. When one dies, the decedent’s interest passes to the survivor.

More terms