1. Samantha is self-employed. She had a tax liability in 2014 of $17,000.

For 2015, her business has grown and Samantha projects a 2015 tax liability of $31,000.

If Samantha makes timely quarterly installments of estimated taxes of $1,500 or she will NOT be subject to underpayment penalties.

True or False?

2. If a taxpayer's AGI is over $150,000 in 2015, he must make estimated tax payments for 2016 that are based on 110% of his 2015 tax liability in order to meet the estimated tax "safe harbor" and avoid an underpayment penalty.

True or False?

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The detailed answer for the above question is provided below Answers False Sam... View the full answer