Taxpayers who do not pay tax through withholding, or do not pay enough tax through withholding,...

 

Transcribed Image Text:

Taxpayers who do not pay tax through withholding, or do not pay enough tax through withholding, may have to pay estimated tax. Calculate the required estimated tax payments for each situation using the information below. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive values. If the value of a cell is zero, enter a zero (0). Situation 1. Steve and Joyce are married and have estimated taxable income of $168,800. Assume that for 2021, the tax on $168,800 would be $39,980. They have taxes of $35,000 withheld during the year. In 2020, they paid a total of $42,000 in taxes for the year and had adjusted gross income of $185,000. What is their required estimated tax payment for 2021? 2. A calendar-year taxpayer must make total estimated tax payments of $4,000 for 2021. To avoid an underpayment penalty, what amount should the taxpayer pay for each installment? 3. Mr Brady, who had a $2,000 tax liability for 2020, expects a $2,100 tax liability for 2021 and withholding of $1,900. How much is Mr. Brady's 2021 estimated tax payment? 4. Susan, a single filer, started a home-based dress business on March 1, 2021. She was an employee and paid income taxes of $6,000 for 2020. Susan's business had net income of $0, $9,000, $11,000, and $15,000 respectively for each of the calendar quarters in 2021. Susan's total tax liability for 2021 was $5,500. Determine the amount of her estimated tax payment due by April 15, 2021 Amount Taxpayers who do not pay tax through withholding, or do not pay enough tax through withholding, may have to pay estimated tax. Calculate the required estimated tax payments for each situation using the information below. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive values. If the value of a cell is zero, enter a zero (0). Situation 1. Steve and Joyce are married and have estimated taxable income of $168,800. Assume that for 2021, the tax on $168,800 would be $39,980. They have taxes of $35,000 withheld during the year. In 2020, they paid a total of $42,000 in taxes for the year and had adjusted gross income of $185,000. What is their required estimated tax payment for 2021? 2. A calendar-year taxpayer must make total estimated tax payments of $4,000 for 2021. To avoid an underpayment penalty, what amount should the taxpayer pay for each installment? 3. Mr Brady, who had a $2,000 tax liability for 2020, expects a $2,100 tax liability for 2021 and withholding of $1,900. How much is Mr. Brady's 2021 estimated tax payment? 4. Susan, a single filer, started a home-based dress business on March 1, 2021. She was an employee and paid income taxes of $6,000 for 2020. Susan's business had net income of $0, $9,000, $11,000, and $15,000 respectively for each of the calendar quarters in 2021. Susan's total tax liability for 2021 was $5,500. Determine the amount of her estimated tax payment due by April 15, 2021 Amount

Answer rating: 100% (QA)

1 Steve and Joyce are married and have estimated taxable income of 168 800 Ass ume that for 2021 the tax on 168 800 would be 39 980 They have taxes of ... View the full answer