Question

Scenarios Basic Scenario 4: Mark and Sue Malone Interview Notes • Mark and Sue are married and U.S. citizens with valid Social Security numbers. • The Malones received wages and a large amount of taxable income not subject to withholding. • Mark did not have health insurance coverage for 2019 and Sue had health insurance coverage through her employer. • The Malones have a $2,500 balance due on their joint return and want advice on how to prevent a balance due next year. They do not anticipate a change in their sources of income and amounts received next year.

Basic Scenario 4: Test Questions

7. One of the ways Mark and Sue can prevent having a balance due next year is to use the Tax Withholding Estimator at IRS.gov and then adjust their withholding. a. True b. False

8. Mark and Sue should not file their tax return until they can pay the entire balance due. a. True

b. False

9. Mark is required to make a shared responsibility payment because he did not have health insurance in 2019.

a. True b.

False

Answer 1

7). True - They can check their withholding using the Tax Withholding Estimator at IRS.gov and adjust accordingly.

8). False - There is a penalty for late filing and failure to file so tax return should be filed even if they cannot pay the entire balance.

9). False - Mark does not need to make a shared responsibility payment because the penalty has expired as of January 2019.