If a taxpayer's AGI is greater than $150,000,no penalty will be imposed if the taxpayer pays estimated tax payments in 2014 equal to what percentage of 2013's income tax liability?
A)100%
B)90%
C)110%
D)120%

Question

Quizplus · Accepted Answer

For taxpayers with an AGI greater than $150,000, they must pay 110% of the previous year's tax liability to avoid penalties on underpayment of estimated taxes.

If a Taxpayer's AGI Is Greater Than $150,000,no Penalty Will