Taxes: Safe harbor provision problem - help?

[secondcor521]

Hi all.

My oldest child is hopefully going off to college next fall, so in preparation for the FAFSA I filled out a preliminary estimated tax return.

I thought I was on track with my withholding, but I apparently was not because of higher income and the fact that my oldest no longer qualifies for the child tax credit, and because I took some unplanned capital gains this month due to the fiscal cliff stuff.

I think I may be on the hook for a tax penalty because I don't meet the safe harbor provisions.  My underpayment is more than $1,000.  I did not pay 90% of my current year tax liability.  I also did not pay more than 100% of my last year tax liability.

Does anyone know of any method to (legally, of course) avoid the penalty now?  My last paycheck has already been processed, so I can't up my withholding.  Can I send in an estimated tax payment and make it count for 2012 somehow?  Other ideas?

2Cor521

[Jamesqf]

Don't know what the situation is when you're a salaried employee, but as self-employed I file estimated tax (Form 1040-ES).  You've got until January 15th to make an estimated tax payment for this year.  I would think (totally unprofessional opinion, though) that if the capital gains are at all significant, then filing estimated tax would actually be the correct thing to do.

[secondcor521]

It looks like you guys are right.

I can apparently make an estimated tax payment before January 15th and put it down on my taxes and it looks like I will avoid the penalty.

Thanks all!

2Cor521