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[The following information applies to the questions displayed below.] This year Lloyd, a single taxpayer, estimates that his tax liability will be $11,650. Last year,

[The following information applies to the questions displayed below.]

This year Lloyd, a single taxpayer, estimates that his tax liability will be $11,650. Last year, his total tax liability was $16,100.

He estimates that his tax withholding from his employer will be $8,845.

a. How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty?

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