I am cashing out a large amount of options by the end of this month. Just over 100k (gross value). Do I have to pay the taxes on this immediately or would they be due with my 2013 filing?
Mon Feb 13, 2012 7:33 pm
coaster Senior Advisor
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Taxes are due and expected to paid on income and gains on an "as received" basis. If you do nothing, you'll be assessed late payment penalties. Two things you can do: make additional estimated payments on a quarterly basis, next due dates for 2012 estimated taxes are the 15th of the months April, June, September and January; or you can increase your paycheck withholding to cover the expected additional tax. The tax you'll be paying is for tax year 2012 and will be reported on the return you file next year.
~Tim~
Tue Feb 14, 2012 4:31 am
drf408 New Member
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Thank you very much, I am new to this. My income for this year will cross into the next tax bracket, (over 174,000) by about a godo 30-35k. I assume if I just pay 33% on the whole amount I would be safe and get a sizable amount back? Do I have to pay state taxes up front or would that wait until 2013 taxes.
Thu Feb 23, 2012 6:27 pm
coaster Senior Advisor
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Well, there's no sense paying the government a lot of money upfront that you'll be getting back. You're probably best off making estimated quarterly tax payments. If the options are a capital gain, the rate on that is 15%, so your payments would be one-quarter of that paid in the months I mentioned. Why don't you spend a few bucks and see a tax guy?
~Tim~
Fri Feb 24, 2012 6:44 am
Amosjoe New Poster
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Re: Hello
How do you estimate what your capital gains tax would be on investment property?
