Joe, a single taxpayer, has 2018 wage income of $125,000 with Federal withholding of $15,000. He also has net rental income of $60,000. Assume he uses the standard deduction. Disregard the Qualified Business Income Deduction and Alternative Minimum Tax.

1. CalculateJoestaxliabilityfor2018. 2. ProvidetheduedatesforthequarterlytaxpaymentstoJoe. 3. CalculateJoesprioryearsafeharborquarterlytaxpaymentsfor2019.

Joes 2019 wages are expected to be $135,000 with Federal withholding of $16,000 and his 2019 net rental income is expected to be $70,000. Assume he uses the standard deduction. Disregard the Qualified Business Income Deduction and Alternative Minimum Tax.

4. Calculate Joes quarterly estimated tax payments if he wanted to pay in the minimum amount to avoid underpayment penalties (90% of current year estimated tax liability)

5. CalculateJoesquarterlyestimatedtaxpaymentsifhewantedtopayin100% of the current year estimated tax liability (i.e. not have a balance due upon filing the 2019 return).

6. What factors should Joe consider before making the decision on what amount to pay for his quarterly estimates?