MayaD
Expert Alumni

Investors & landlords

Yes.  Estimated tax is the method used to pay tax on income that is not subject to withholding

 

You can avoid this penalty if you either owe less than $1,000 in tax after subtracting your withholding and refundable credits, or if you paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller.

 

For more information check the IRS link.

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