Minnie, a calendar year taxpayer, filed a return correctly showing a zero Federal income tax liability for last year because her Form 1040 showed various deductions and credits. For this tax year, Minnie's AGI is $120,000, and her tax liability is $20,000. To avoid a penalty for the current year, Minnie must make aggregate estimated tax payments of at least:
A) $20,000.
B) $18,000.
C) $1,000 (minimum amount).
D) $0.

Question

Quizplus · Accepted Answer

Since Minnie had a zero Federal income tax liability in the previous year, she is not required to make any estimated tax payments for the current year to avoid a penalty, regardless of her current year's income or tax liability.

Minnie, a Calendar Year Taxpayer, Filed a Return Correctly Showing