Tax withholding on which type of income?

Question

On which types of income do US Citizen have to pay tax prepayments? Like the withholding on wages by the employer.
Are there some kind of "do-it-youself" prepayments, maybe on property income?
Are there any exempted types of income?

Answer 1

When you file your tax return, if you don't have enough paid in based on your total tax owed, then you can be subject to penalties for under-withholding. The IRS doesn't care where the income came from, or where the withholding came from. If you don't have a job that withholds income tax, or if the withholding isn't sufficient, then you should make quarterly estimated payments using form 1040ES.

Answer 2

Legally, you are required to pay tax on ALL income as it is earned. If your withholding from jobs that issue W-2s is enough that your remaining tax liability at the end of the year is less that $1000, or 10% of you total tax for the year, you don't need to make any additional payments throughout the year. If you owe more, and your withholding is less than your total tax from the prior year, you should make quarterly estimated payments. From 1040-ES is used to make these payments. If any of your income is from a job subject to withholding, I recommend having enough withheld to avoid quarterly payments.

Answer 3

Go to IRS.GOV and look in forms for Pub 17. It gives you a good in depth review of how to and what is. If you can guestimate your federal income tax for the year you can always fill out a 1040SE for each quarter and make a payment with it.