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- Jan 1, 2020
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Hi.
I have a major bump in short term and long term capital gains for this year due to selling my company stock after a big rise.
I read that there is a safe harbor of 110% of what you owed for the previous year for federal.
My question is, is that sufficient to fully protect me next year, or should I really still make estimated payments anyway?
I increased my withholdings at work so I should be above 110%, but since I just did it, these additions would be a bit back-weighted.
I was told that California may not abide by that and you should still make a good faith effort to have the full amount paid quarterly.
Is this true? Of course if I kept this large amount of money in an interest bearing account rather than forking over now, I would get a decent amount of interest. Is it worth the risk to rely on the safe harbor?
I have a major bump in short term and long term capital gains for this year due to selling my company stock after a big rise.
I read that there is a safe harbor of 110% of what you owed for the previous year for federal.
My question is, is that sufficient to fully protect me next year, or should I really still make estimated payments anyway?
I increased my withholdings at work so I should be above 110%, but since I just did it, these additions would be a bit back-weighted.
I was told that California may not abide by that and you should still make a good faith effort to have the full amount paid quarterly.
Is this true? Of course if I kept this large amount of money in an interest bearing account rather than forking over now, I would get a decent amount of interest. Is it worth the risk to rely on the safe harbor?