Last year I had very low total income. My 1040 line 24 total tax was only about $1500. This year I have much higher income. About half of my income this year is ordinary, and the other half is short term capital gains.

    As far as I understand it, I don't have to prepay more than 110% of last year's tax which would be 1650? My job withholdings are more than this already.

    Does this mean I can ignore figuring out estimated quarterly payments on my capital gains and just pay tax on that with my annual filing?

    Thanks!

    Do I need to pay estimated tax or can I use safe harbor?
    byu/EditorAny4043 intax



    Posted by EditorAny4043

    1 Comment

    1. Correct, you do not need to pay estimated taxes this year based on what you wrote. Note that your safe harbor amount will go up for 2026 based on the 2025 taxes owed.

    Leave A Reply
    Share via