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Investors & landlords
Simple answer: you can wait until you file your taxes to pay.
There is usually no penalty for under paying your income tax, in a situation where your taxable income increased from the previous year.
Technically the rule is: You should make estimated tax payments for the current tax year if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
- 2. You expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your current year’s tax return, or 100% of the tax shown on your prior year’s tax return.
November 15, 2020
4:40 AM