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r/tax • … • u/nwbeng

Can I let quarterly tax and year end refund cancel each other out?

So I got a sizable refund this year. I was about to change my withholding for next year, however, I’m planning on selling a significant amount of stock later this year and my rough calculation is that the capital gains tax hit will be pretty equivalent to the amount I got refunded for 2023 (and for 2024 if nothing else changes). So my question is do I need to go through the hassle of changing my withholding and then paying quarterly capital gains taxes or can I just let it all equal out by the end of the year? Does the IRS care where it comes from as long as you’re not hugely off one way or the other?

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