Question
This year Lloyd, a single taxpayer, estimates that his tax liability will be $11,500. Last year, his total tax liability was $16,000. He estimates that
This year Lloyd, a single taxpayer, estimates that his tax liability will be $11,500. Last year, his total tax liability was $16,000.
He estimates that his tax withholding from his employer will be $8,750.
- How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty?
Determine the amount of the late filing and late payment penalties that apply for the following taxpayers.
Lloyd filed his tax return by its original due date but did not pay the $1,100 in taxes he owed with the return until one and a half months later.
2. What are the late filing and late payment penalties?
Lloyd filed his tax return and paid his $2,100 tax liability five months late.
3. What are the late filing and late payment penalties?
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