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I married earlier this year. Unfortunately I did not change my wife or own tax withholdings. Last year combined we with held $17,622 and when all was said and done we paid a total of $17,514 tax liability. This year I have estimated that we will have had $17,341 with held but will end up paying either $20400 or possibly up to about $27,000 if I sell some stock before the years end. IF I understand the IRS rules right if we had withheld at least $17,514 (last years tax liability) we wouldn't have to worry about quarterly estimated tax payment or a penalty...right?
We would just pay the $4000+ we owe in April..right? Is there anything we can do before hand to increase what is withehld this year? Can we pay the quarterly estimate by January 15 and not have to worry about paying the other 3 quarterly payements? Is the penalty sever enough where I should hold off selling my stock this year? We can I find the formula for the penalty? I have the basic version of turbo tax and it didn't have the penalty formula. Thanks in advance for any help you could give.
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