Charles and Joan Thompson file a joint return. In 2019, they had taxable income of $95,560 and paid tax of $12,902. Charles is an advertising executive, and Joan is a college professor. During the fall 2020 semester, Joan is planning to take a leave of absence without pay. The Thompsons expect their taxable income to drop to $77,000 in 2020. They expect their 2020 tax liability will be $8,855, which will be the approximate amount of their withholding. Joan anticipates that she will work on academic research during the fall semester. During September, Joan decides to perform consulting services for some local businesses. Charles and Joan had not anticipated this development. Joan is paid a total of $38,500 during October, November, and December for her work. Use the appropriate Tax Rate Schedules. Required: a. What estimated tax payments are Charles and Joan required to make, if any, for tax year 2020? Estimated tax payments required b. Do you anticipate that the Thompsons will be required to pay an underpayment penalty when they file their 2020 tax return? Assume that Charles and Joan made the estimated payment as determined in requirement a. Yes No 2020 Federal Income Tax Information 2020 Federal Tax Rate Schedules Schedule X-Single If taxable income is over: But not over: $0 $9,875 $ 40,125 $ 85,525 $ 163,300 $207,350 $ 518,400 $9,875 $40,125 $ 85,525 $ 163,300 $ 207,350 $518,400 - The tax is: 10% of taxable income $987.50 plus 12% of the excess over $9,875 $4,617.50 plus 22% of the excess over $40,125 $14,605.50 plus 24% of the excess over $85,525 $33,271.50 plus 32% of the excess over $163,300 $47,367.50 plus 35% of the excess over $207,350 $156,235.00 plus 37% of the excess over $518,400 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: 10% of taxable income $0 $ 19,750 $ 80,250 $ 171,050 $ 326,600 $414,700 $ 622,050 $ 19,750 $ 80,250 $ 171,050 $ 326,600 $414,700 $ 622,050 - $1,975.00 plus 12% of the excess over $19,750 $9,235.00 plus 22% of the excess over $80,250 $29,211.00 plus 24% of the excess over $171,050 $66,543.00 plus 32% of the excess over $326,600 $94,735.00 plus 35% of the excess over $414,700 $167,307.50 plus 37% of the excess over $622,050 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: $0 $9,875 10% of taxable income $ 40,125 $9,875 $40,125 $ 85,525 $ 163,300 $207,350 $311,025 $ 85,525 $ 163,300 $207,350 $ 311,025 Schedule Z-Head of Household If taxable income is over: But not over: $0 $ 14,100 $ 53,700 $ 85,500 $ 163,300 $207,350 $ 518,400 $ 14,100 $53,700 $ 85,500 $ 163,300 $207,350 $ 518,400 - The tax is: $987.50 plus 12% of the excess over $9,875 $4,617.50 plus 22% of the excess over $40,125 $14,605.50 plus 24% of the excess over $85,525 $33,271.50 plus 32% of the excess over $163,300 $47,367.50 plus 35% of the excess over $207,350 $83,653.75 plus 37% of the excess over $311,025 10% of taxable income The tax is: $1,410.00 plus 12% of the excess over $14,100 $6,162.00 plus 22% of the excess over $53,700 $13,158.00 plus 24% of the excess over $85,500 $31,830.00 plus 32% of the excess over $163,300 $45,926.00 plus 35% of the excess over $207,350 $154,793.50 plus 37% of the excess over $518,400