Amelida expects to earn $145,000 of AGI and $125,000 of taxable income this year.She is concerned about underpayment penalties.Because of a substantial bonus,her prior year AGI was $155,000 and her taxable income was $135,000.Based on her fact pattern,which of the following scenarios will not allow her to avoid underpayment penalties?
A)The estimated payments total at least 90% of the tax due for the current year.
B)The estimated payments total at least 100% of the tax due for the prior year.
C)The estimated payments total at least 110% of the tax due for the prior year.
D)The estimated tax is less than $1,000.

Question

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The Answer of Amelida expects to earn $145,000 of AGI and $125,000 of taxable income this year.She is concerned about underpayment penalties.Because of a substantial bonus,her prior year AGI was $155,000 and her taxable income was $135,000.Based on her fact pattern,which of the following scenarios will not allow her to avoid underpayment penalties?
A)The estimated payments total at least 90% of the tax due for the current year.
B)The estimated payments total at least 100% of the tax due for the prior year.
C)The estimated payments total at least 110% of the tax due for the prior year.
D)The estimated tax is less than $1,000.

Amelida Expects to Earn $145,000 of AGI and $125,000 of Taxable