Raj has come to you in March 2020 with help regarding his 2020 estimates. He started...

 

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Raj has come to you in March 2020 with help regarding his 2020 estimates. He started a new business in 2019, and now he is unsure as to whether he needs to make estimates and if so when and how much he should make. He provides you with the following information. He is married. His 2019 AGI was $300,000 and his 2019 tax liability was $95,000. His business has not yet taken off and he anticipates his 2020 AGI will be $250,000 with total tax of $70,000. He spends all his time with the business so he has no salary or withholding from other employers. However, his wife will have withholding on her salary of $15,000 for 2020. What is your recommendation to Roy in this situation? Include in your answer how estimates are calculated and why Raj would make need to make estimates (if necessary). 4 POINTS Raj has come to you in March 2020 with help regarding his 2020 estimates. He started a new business in 2019, and now he is unsure as to whether he needs to make estimates and if so when and how much he should make. He provides you with the following information. He is married. His 2019 AGI was $300,000 and his 2019 tax liability was $95,000. His business has not yet taken off and he anticipates his 2020 AGI will be $250,000 with total tax of $70,000. He spends all his time with the business so he has no salary or withholding from other employers. However, his wife will have withholding on her salary of $15,000 for 2020. What is your recommendation to Roy in this situation? Include in your answer how estimates are calculated and why Raj would make need to make estimates (if necessary). 4 POINTS

Answer rating: 100% (QA)

The estimates of Raj regarding 2020 was not good comparing to 2019His estimates shows ... View the full answer