Christian is a professional chef for a restaurant who also runs a small catering business. Christian did not have enough withheld from his paychecks to cover the federal taxes on the additional income and ended up having to pay an additional $500 in federal taxes at the end of the year. What would you recommend to Christian to avoid having this issue again the next year?

Select the correct answer below:

Christian should drop the catering business so that the total income is reduced, leading to the amount of taxes owed being less than the amount withheld.

Christian should increase the amount withheld from his paycheck at the restaurant so that enough will be withheld to account for the additional income.

Christian should earn more money in the next year so that he can pay the extra amount needed at the end of the year.

Christian should take a pay cut or work fewer hours so that the total amount taxed is less than the amount withheld.