You earned close to $15,000 last year (2022), about 50% from your summer job as a landscaper; and the rest from your school employment at Zaxby's. Your total tax liability for 2022 was $1.000. This year, thanks to summer internship with a lucrative Registered Investment Advisory (RIA) you expect to earn $50,000 with a tax liability of $5,000 What's the lowest amount you can have withheld ( (and/or paid to the IRS for 2023) so that you don't incur a penalty for the underpayment of taxes?

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To avoid incurring a penalty for underpayment of taxes you generally need to ensu... View the full answer