BarBRanch has had taxable income of $450,000, $570,000, $760,000 and $680,000 in years 2014 through 2017, respectively. What were the equal minimum quarterly estimated tax payments for 2017 that BarBRanch should have made in 2017 to avoid any penalty?

Question

Quizplus · Accepted Answer

Tax on $680,000 is $231,200. Minimum quarterly payment = 25% ($231,200 - $499) = $57,675.25 rounded up to 57,676 as the underpayment must be less than $500.

BarBRanch Has Had Taxable Income of $450,000, $570,000, $760,000 and $680,000