Question 81 of 100.

Holly's (MFS) 2023 tax liability is $51,293. Her AGI is greater than $75,000. Her 2023 withholding was $42,910, and she made no other payments during the year. Her 2022 tax liability was $39,570. Does she owe an estimated tax payment penalty for 2023? Why or why not?

Yes. She owes a penalty because her 2023 balance due is less than $1,000.

Yes. She owes a penalty because she did not have at least 110% of her 2022 tax liability withheld during the year.

No. She does not owe a penalty because her 2023 withholding was greater than 110% of her 2022 tax liability.

No. She does not owe a penalty because her 2023 withholding is at least 90% of her 2023 tax liability.