Question
This year, Paula and Simon (married filing jointly) estimate that their tax liability will be $230,000. Last year, their total tax liability was $190,000. They
This year, Paula and Simon (married filing jointly) estimate that their tax liability will be $230,000. Last year, their total tax liability was $190,000. They estimate that their tax withholding from their employers will be $198,000.
a. Are Paula and Simon required to increase their withholdings or make estimated tax payments this year to avoid the underpayment penalty?
multiple choice
-
Yes
-
No
b. By how much, if any, must Paula and Simon increase their withholding and/or estimated tax payments for the year to avoid underpayment penalties?
Increase in withholding:
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