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It is possible. His federal withholdings will be in box 2 of his w2. Most passive income on schedule D or E will not have taxes withheld. If he didn't pay any estimated taxes, it is very possible that his only withholdings are from his w2.
I'm not concerned about what he paid in, I am concerned that $ 45K in taxable income produces a tax liability of only $ 363....the worksheet on Schedule D seems to not tax his $ 45K of Territory right income....he sold area rights to another air conditioning company
I must drive to an appointment now....sorry I will pick this up again at 3 30 pm
Sch D income is taxed at different, often much lower tax rate. To be sure, check the dividends and capital gain worksheet calculation. But it is not unusual, that Adjusted gross income driven mostly by passive income/loss produce very low taxable liability. Sch K1 should give an idea how the income is being treated.