Tax Q&A;: Withholding

This daily tax season column publishes questions from readers with answers from local members of the California Society of Certified Public Accountants. Questions and answers will be posted on The Times’ Web site, https://www.latimes.com/taxes, as they appear.

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Q. Thanks to some active stock trading and a few unexpected commissions, I did not have enough taxes withheld last year. As a result, I will owe close to $15,000 in federal taxes and penalties of approximately $1,700 come April 15. I knew before the end of the year about this situation but didn’t know how to correct it. What should I have done? And is there anything I can do now?

A. You should have either increased your withholding on the unexpected commission checks or made estimated quarterly payments based on the quarterly income from your stock trading and your commissions. Form 1040-ES, Estimated Tax for Individuals, includes a work sheet to help you figure the tax and the form you need to file with your check. The only recourse available now to minimize penalties and interest is to file and pay all that is due by April 15. In the future, your CPA can be helpful by projecting your taxes and advising you on the amounts of withholding and estimated payments to be made.

--Sanford Friedman, CPA , Woodland Hills

To submit a tax question, send it by e-mail to taxes@latimes.com ; by fax to Tax Q&A; at (213) 237-7837; or by mail to Tax Q&A;, Business Section, Los Angeles Times, Times Mirror Square, Los Angeles, CA 90053. Your name will not be published, but you must tell us how to reach you in case we need to clarify your question.