With respect to estimated tax payments for a taxpayer with AGI of $150,000 or lower in the prior year,all of the following are generally true with the exception of
A)no penalty is imposed if the estimated tax is less than $1,000.
B)no penalty is imposed if the individual has no tax liability for the prior year.
C)no underpayment penalty is imposed if the estimated payments total at least 90% of the tax due for the current year.
D)no underpayment penalty is imposed if the estimated payments total at least 90% of the actual tax liability for the prior year.

Question

Quizplus · Accepted Answer

The correct statement is that no underpayment penalty is imposed if the estimated payments total at least 100% (110% in certain situations) of the actual tax liability for the prior year, not 90%. Choices A, B, and C are all generally true.

With Respect to Estimated Tax Payments for a Taxpayer with AGI