A taxpayer who has income that is not subject to withholding is never required to make estimated payments during the year.

Question

Quizplus · Accepted Answer

If a taxpayer has income that is not subject to withholding, such as self-employment income or rental income, and expects to owe at least $1,000 in tax for the year, they are generally required to make estimated payments during the year or face penalties for underpayment.

A Taxpayer Who Has Income That Is Not Subject to Withholding