Sheryl's AGI is $251,600

Accounting Aug 07, 2020

Sheryl's AGI is $251,600. Her current tax liability is $52,228. Last year, her tax liability was $48,882. She will not owe underpayment penalties if her total estimated tax payments are at least which of the following amounts (assume she makes the required payments each quarter)?

$47,005

$48,882

$51,706

$53,770

Expert Solution

Correct option is A :47,005

Explanation

Because Sheryl’s AGI is over $150,000, her estimated payments must be either 90 percent of her current tax liability which is $ 52,228*90% is 47,005

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