Vito anticipates that his actual tax liability for the tax year will be $12,600 and that federal income taxes withheld from his salary will be $10,000. Thus, when he files his current year income tax return, he will have a $2,600 balance due. In the previous year, his actual federal income tax liability was $9,000 and his AGI was less than $150,000.

a.	Is Vito required to make estimated tax payments in the current year? Explain.
b.	Will Vito be subject to an underpayment penalty if his prior year AGI was $200,000? Why?

Will Vito be subject to an underpayment penalty if his prior year AGI was $200,000? Why?

Because his prior year AGI was more than $150,000, to avoid the underpayment penalty for the current tax year, Vito's federal income tax prepayments (withholding plus estimated payments) must total at least ________ .