Question
Kyle, a single taxpayer, worked as a free-lance software engineer for the first three months of 2019. During that time, he earned $64,000 of self-employment
Kyle, a single taxpayer, worked as a free-lance software engineer for the first three months of 2019. During that time, he earned $64,000 of self-employment income. On April 1, 2019, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Inc. From April through the end of the year, Kyle earned $184,000 in salary. What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year? (Round your intermediate calculations to the nearest whole dollar amount.)
[The following information applies to the questions displayed below.] This year Lloyd, a single taxpayer, estimates that his tax liability will be $10,450. Last year, his total tax liability was $15,300. He estimates that his tax withholding from his employer will be $8,085.
rev: 02_29_2020_QC_CS-202942
a. How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty?
This year Lloyd, a single taxpayer, estimates that his tax liability will be $10,450. Last year, his total tax liability was $15,300. He estimates that his tax withholding from his employer will be $8,085.
rev: 02_29_2020_QC_CS-202942
b. Assuming Lloyd does not make any additional payments, what is the amount of his underpayment penalty? Assume the federal short-term rate is 5 percent. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
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