A late-year stock gain can create an estimated-tax problem
A November sale can increase both the tax due and the risk of an underpayment penalty. The right response may involve a Jan. 15 payment, annualized income or additional wage withholding.
Key points
Read the guide →- Your final tax bill and your safe-harbor target are different calculations.
- Late-year wage withholding can help because withholding is generally treated as paid evenly through the year.
- Schedule AI may better reflect income that arrived late in the year.