All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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SPL
Valued Pioneer
Posts: 3
Registered: ‎04-12-2017

Estimated Massachusetts Tax Payments from one-time income?

I sold some stock for >$200k in long term capital gains in November of 2017. I have federal and state tax withholdings from my income. Those payments are > 110% of my federal taxes paid last year

 

  1. Am I exempt from making an estimated Federal tax payment before 1/15/2018?
  2. If not, can that payment only be enough to meet that threshold or do I need to pay in 95% of what I will owe?
  3. What are the exemption options from making an estimated Massachusetts state tax payment?
Highlighted
Trusted Council Member
Posts: 6,191
Registered: ‎02-23-2016

Re: Estimated Massachusetts Tax Payments from one-time income?

Hi SPL,

 

 

 

Before I answer this, did you owe federal income tax with your tax return last year?

 

The exception to estimated payments is that you either:

  1. didn't owe any tax on your tax return for last year
  2. have enough withholdings to cover at least 90% of your federal income tax for this year