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Rick's projected tax liability for the current year is $34,500. Although Rick has substantial dividend and interest income, he does not pay any estimated taxes.

Rick's projected tax liability for the current year is $34,500. Although Rick has substantial dividend and interest income, he does not pay any estimated taxes. Rick's withholding for January through November of the current year is $1,500 per month. He wants to increase his withholding for December to avoid the penalty for underpaying estimated taxes. Rick's previous year's liability (excluding withholding) is $28,000. His previous year's AGI did not exceed $150,000. Requirement What amount should Rick have withheld from his December paycheck? Explain. For Rick, the amount paid in for the year must equal the of or to avoid underpayment penaltiesimage text in transcribed

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