I’m expecting to sell some stocks at a gain and want to do the right thing. Everything I’m reading seems to indicate that I should estimate my tax owed and make a payment. Is this something that is done in practice? I’m hoping people here might have some experience/knowledge to share.
A couple questions:
How much of a gain is needed for estimated taxes to be mandatory? Is it any amount of gains?
Can the estimated tax payment happen any time in the same year as the stock sale? For example, if I sold stocks in May 2020, do I have until December 2020? Or perhaps until the tax deadline in April 2021?