Vincent anticipates that his actual tax liability for the tax year will be $12,000 and that federal
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Vincent anticipates that his actual tax liability for the tax year will be $12,000 and that federal income taxes withheld from his salary will be $9,000. Thus, when he files his current year income tax return, he will have a $3,000 balance due. In the previous year, his actual federal income tax liability was $8,000 and his AGI was less than $150,000.
a. Is Vincent required to make estimated tax payments in the current year? Explain.
b. Will Vincent be subject to an underpayment penalty if his prior year AGI was $175,000? Why?
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Related Book For
Pearsons Federal Taxation 2023 Comprehensive
ISBN: 9780137840656
36th Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S Hulse
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