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Required to pay quarterly on rental income from one home?

2 Replies
Expert Alumni

Required to pay quarterly on rental income from one home?

If you are asking if you are required to file quarterly estimated payments when the only income you have is rental income from one house, then the answer is "Unfortunately, yes, if you had a tax liability and balance due on your income tax return last year and had no withholding paid in to apply against it."


If you are not sure if that is correct, then look at the Form 2210 on the current year return answering the questions and see if you have been assessed an underpayment penalty. If so, then the reason is that you did not pay enough taxes during the year as you earned the income.


The requirements to pay quarterly estimated tax payments are as follows:


Who Must Make Estimated Tax Payments


The estimated tax rules apply to:

• U.S. citizens and resident aliens;

• Residents of Puerto Rico, the U.S. Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa; and

• Nonresident aliens (use Form 1040-ES (NR))


General Rule

In most cases, you must pay estimated tax for 2021 if both of the following apply.

1. You expect to owe at least $1,000 in tax for 2021, after subtracting your withholding and refundable credits.

2. You expect your withholding and refundable credits to be less than the smaller of:

  • a. 90% of the tax to be shown on your 2021 tax return, or
  • b. 100% of the tax shown on your 2020 tax return. Your 2020 tax return must cover all 12 months.

Note. These percentages may be different if you are a farmer, fisherman, or higher income taxpayer.



  • You don’t have to pay estimated tax for 2021 if you were a U.S. citizen or resident alien for all of 2020 and you had no tax liability for the full 12-month 2020 tax year.
  • You had no tax liability for 2020 if your total tax was zero or you didn’t have to file an income tax return.

Special Rules There are special rules for farmers, fishermen, certain household employers, and certain higher income taxpayers.


Refer to the following link for additional information:

Do you have to pay estimated tax payments



Level 15

Required to pay quarterly on rental income from one home?

Here's some additional information that may or may not apply to your situation.

If you have "RESIDENTIAL" rental property (as opposed to commercial rental property) and there is a mortgage on that property, it is not common for residential rental property to actually show a taxable profit on paper, at tax filing time. Doesn't mean it won't show a profit... just that it's not common to show a profit.

This is because when you add up the deductible expenses of mortgage interest, property taxes and property insurance along with the depreciation you are required to take on the rental property each year, those four items alone will usually exceed the total amount of rental income received for the tax year.

Add to that the other allowed rental expenses (repairs, maintenance, etc) and you're practically guaranteed to show a loss for every year the property is classified as a rental.

While it certainly doesn't hurt to send it quarterly tax payments if you want to, if you end up getting all of it back plus some, then all you're doing is allowing the taxing authority to utilize "your" money interest free, until you file a tax return and end up getting it all refunded.


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