This year Lloyd, a single taxpayer, estimates that his tax liability will be $10,000. Last year, his total tax liability was $15,000. He estimates that his tax withholding from his employer will be $7,800. a. How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty? Increase in withholding This year Lloyd, a single taxpayer, estimates that his tax liability will be $10,000. Last year, his total tax liability was $15,000 He estimates that his tax withholding from his employer will be $7,800. 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 Actual Over (Under) Withheld Penalty Per Quarter Dates Required Withholding Withholding April 15th June 15th September 15th January 15th Total This year Lloyd, a single taxpayer, estimates that his tax liability will be $10,000. Last year, his total tax liability was $15,000. He estimates that his tax withholding from his employer will be $7,800. a. How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty? Increase in withholding This year Lloyd, a single taxpayer, estimates that his tax liability will be $10,000. Last year, his total tax liability was $15,000 He estimates that his tax withholding from his employer will be $7,800. 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 Actual Over (Under) Withheld Penalty Per Quarter Dates Required Withholding Withholding April 15th June 15th September 15th January 15th Total