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Originally Posted by lewdog
Can someone explain to me who and what estimated taxes should be paid through the year from selling stock? I have done lots of reading and it’s comfusing who must pay through year and who can just wait to pay these when they file their taxes for the year?
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Here is some decent explanation of underpayment rules. Underpaid is different than owing. Underpaying means the IRS is going to fine you. Owing just means you have a liability but no penalties.
Basically it says that if you owe a grand or less you're good (total tax - withholding). Or you've paid the lesser of 90% of total tax due OR 100% of PY tax liability.
And that is assessed capital gains. Gains in a retirement fund are not taxed. So you're just looking at whatever you've sold outside of retirement.
I'd say if you are withholding enough for you and your wife, and unless you have a SHITLOAD of gain, you're probably good.