An individual with AGI equal to or less than $150,000 in the prior year may generally avoid penalties for underpayment of estimated tax in each of the following cases with the exception of
A)estimated tax is less than $1,500.
B)90% of the tax due for the current year is paid.
C)90% of the tax due for the current year is paid when computed on an annualized basis.
D)100% of the actual tax liability for the prior year is paid.

Question

Quizplus · Accepted Answer

The threshold for avoiding penalties is typically $1,000, not $1,500.

An Individual with AGI Equal to or Less Than $150,000