Reported 4 months ago
Michele Cagan, CPA, advises on mitigating large tax bills due to investment accounts not withholding taxes from capital gains. Strategies include increasing withholding from other income sources, making quarterly estimated tax payments, and contacting mutual funds for potential withholding. Understanding capital gains distributions and using safe harbor guidelines to avoid underpayment penalties are key. Taking proactive steps can help manage tax liability throughout the year and prevent an unexpected balance due in April.
Source: YAHOO