Sheryl's AGI is $250,000. Her current tax liability is $52,068. Last year, her tax liability was $48,722. She will not owe underpayment penalties if her total estimated tax payments are at least which of the following (rounded)amounts? (Assume she makes the required payments each quarter.)

Question

Quizplus · Accepted Answer

The required estimated tax payments are 90% of the current year's tax liability or 100% of the prior year's tax liability, whichever is less. 90% of $52,068 = $46,861. 100% of $48,722 = $48,722. The required estimated tax payments are $46,861.

Sheryl's AGI Is $250,000