This year, Paula and Simon (married filing jointly) estimate that their tax liability will be $206,000. Last year, their total tax liability was $174,000. They estimate that their tax withholding from their employers will be $179,600. a. Are Paula and Simon required to increase their withholdings or make estimated tax payments this year to avoid the underpayment penalty? 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

This year, Paula and Simon (married filing jointly) estimate that their tax liability will be $206,000. Last year, their total tax liability was $174,000. They estimate that their tax withholding from their employers will be $179,600. a. Are Paula and Simon required to increase their withholdings or make estimated tax payments this year to avoid the underpayment penalty? 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

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 26CE

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