Thomas had $8,500 withheld from his paycheck, but since he has a large amount of interest and dividends, he is required to make quarterly estimated tax payments due to the

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The pay-as-you-go concept requires taxpayers to regularly make estimated tax payments throughout the year to avoid underpayment penalties. Since Thomas has a large amount of interest and dividends, he is likely to owe additional taxes beyond what was withheld from his paycheck, making him subject to the pay-as-you-go requirement.

Thomas Had $8,500 Withheld from His Paycheck, but Since He