ZuoTi.Pro
Question

Riley's current year tax liability is $30,000, withheld tax plus estimtated tax payments is $25,000, adjusted...

Riley's current year tax liability is $30,000, withheld tax plus estimtated tax payments is $25,000, adjusted gorss income is $100,000 and prior year tax liability was $25,000. Will he be subject to penalty for failure to make estimated income tax payments and if so on what amount the penalty will be applicable?

Yes, penalty will be applicable on $5,000 tax due.

Yes, penalty will be applicable on $25,000.

Yes, penalty will be applicable on $30,000

No penalty is applicable.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Yes, penalty will be applicable on $25000

If you did not pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax.

please see IR-2019-144 for a waiver of the estimated tax penalty for eligible 2018 tax filers.

0 0
Add a comment
Know the answer?
Add Answer to:
Riley's current year tax liability is $30,000, withheld tax plus estimtated tax payments is $25,000, adjusted...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Jaxon's current year tax liability is $45,000, withheld tax plus estimtated tax payments is $41,000, ajdusted...

    Jaxon's current year tax liability is $45,000, withheld tax plus estimtated tax payments is $41,000, ajdusted gross income is $140,000 and prior year tax liability was $140,000. Which of the following statement is correct regarding the penalty for failure to make estimated income tax payments? No penalty is applicable as the withheld tax and estimated tax payments is more than 90% of current year tax liability. Penalty is applicable as there is more than $1,000 tax due. No penalty is...

  • Violet's tax liability was $5,000 and withheld tax and estimated tax payments were $4,500. He had...

    Violet's tax liability was $5,000 and withheld tax and estimated tax payments were $4,500. He had not applied for extension and filed his tax return 8 months after the due date. Which of the following statements is correct regarding penalty for failure to file a tax return? No penalty is applicable as the tax due is less than $1,000. A minimum penalty of $100 may be assessed. Penalty is applicable on $5,000. Penalty is applicable on $500 tax due.

  • ane is a single taxpayer with a current year AGI of $181,000 and current year income tax liability of $39,610. Her AGI i...

    ane is a single taxpayer with a current year AGI of $181,000 and current year income tax liability of $39,610. Her AGI in the prior year was $150,400 and prior year tax liability was $32,182. Jane earns her income ratably during the year. In order to avoid penalty, the smallest amount of required annual withholding and estimated payments is: a. $35,649 b. $32,182 c. $39,610 d. $35,400 e. $43,571

  • Requirement: Classify Each liability as a current or long term and report the liability and its...

    Requirement: Classify Each liability as a current or long term and report the liability and its amount that would appear on the prestige golf equipment balance sheet at October 31, 2017. a. Sales of $5,250,000 are subject to estimated warranty cost of 3%. The estimated warranty payable at the beginning of the year was $38,000, and warranty payments for the year totalled $52,000. b. On October 1, 2017, Prestige signed a $150,000 note that requires annual payments of $30,000 plus...

  • Jim has year 20X1 tax liability of $39,000. He estimates that 20X2 tax liability will be...

    Jim has year 20X1 tax liability of $39,000. He estimates that 20X2 tax liability will be $48,000. Year 20X1 AGI was $175,000. Year 20X2 withholdings from wages will be $28,000. What amount of estimated tax payment must Jim make each quarter to not incur an underpayment penalty for 20X2? a. $5,000 b. $2,750 C. $3,725 d. $3,800 e. None of the above

  • Jane is a single taxpayer with a current year AGI of $181,000 and current year income...

    Jane is a single taxpayer with a current year AGI of $181,000 and current year income tax liability of $39,610. Her AGI in the prior year was $150,400 and prior year tax liability was $32,182. Jane earns her income ratably during the year. In order to avoid penalty, the smallest amount of required annual withholding and estimated payments is: a.$35,400 b.$32,182 c.$43,571 d.$35,649 e.$39,610

  • Millie’s 2019 tax liability is $41,293. Her AGI is greater than $150,000 m. Her 2019 withholding...

    Millie’s 2019 tax liability is $41,293. Her AGI is greater than $150,000 m. Her 2019 withholding is $36,910. Her 2018 tax liability was $29,570. Does she owe an estimated tax penalty payment for 2019? Why or why not? - yes. She owes a penalty because her balance due is greater than $1000. - yes. She owes a penalty because she did not have at least 100% of her tax liability withheld during the year. - no. She does not owe...

  • 1) Max received an extension of time to file his 2018 income tax return. He did...

    1) Max received an extension of time to file his 2018 income tax return. He did not pay any amount due with his extension. He finally filed his return on May 3, with a $900 balance due. How much must he pay in failure-to-file and failure-to-pay penalties? A) None, as long as he timely filed for the extension. B) A failure-to-pay penalty of 0.5%, but no failure-to-file penalty. C) A failure-to-file penalty of 5% plus a 0.5% failure-to-pay penalty for...

  • include procedure 9. Assume that Samson and Delilah's Gross Alternative Minimum Tax is $16.320 and that...

    include procedure 9. Assume that Samson and Delilah's Gross Alternative Minimum Tax is $16.320 and that their regular income tax computed using the normal rules and tables is $15,030. The following is true: A. Samson and Delilah have to pay a total tax of $15,030. B. Samson and Delilah have to pay a total tax of $16,320 C. Samson and Delilah have to pay a total tax of $1,290. D. The Alternative Minimum Tax is not applicable to John and...

  • i will to understand the process. 4. Jim has year 20X1 tax liability of $39,000. He...

    i will to understand the process. 4. Jim has year 20X1 tax liability of $39,000. He estimates that 20x2 tax liability will be $48,000. Year 20X1 AGI was $175,000. Year 20X2 withholdings from wages will be $28,000. What amount of estimated tax payment must Jim make each quarter to not incur an underpayment penalty for 20x2? a. $5,000 b. $2,750 c. $3,725 d. $3,800 e. None of the above

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT