Prepaid tax?

USA Discussion in 'General Tax Discussion' started by FltCpt, Dec 10, 2018.

  1. FltCpt


    Nov 9, 2015
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    I have a bit of gain in the stock market this year, but my broker would not do tax withholding for me.
    I worry that I have gone over the limit and incur tax penalty next year (because I had not
    paid enough tax withholding).

    Does anybody know if there is an IRS tax form that I can just fill out and then mail them a check
    in advance within this year or so, kind of like my own withholding? If I just mail them a check cold
    (I dont have any other information) will they know what to do with it?

    Any advice will be appreciated, thanks!
    FltCpt, Dec 10, 2018
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  2. FltCpt

    kirby VIP Member

    May 12, 2011
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    Sure .On internet lookup " irs form 1040-rs for 2018". Download the form and follow the directions. You should do the same for your state taxes too.
    kirby, Dec 11, 2018
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  3. FltCpt

    bklynboy VIP Member

    Oct 12, 2011
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    Not aware of tax withholding on personal stock transactions. I don't think there is any penalty either. Unless you are sure you will be penalized just pay the tax when you file in April - no need to give them more money.

    I would also look into whether you have any securities in a loss that can be sold to mitigate the tax - these should be stocks you plan to sell anyway but time it this year so you can reduce your capital gains tax on appreciated sales.
    bklynboy, Dec 11, 2018
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