Mickey, a calendar year taxpayer, was not required to file a Federal income tax return last year because his AGI was very low. For this tax year, his AGI is $120,000 and his tax liability is $10,000. To avoid a penalty for tax underpayments for the current year, Mickey must make aggregate estimated tax payments of at least:
A) $10,000.
B) $9,000.
C) $1,000 (minimum amount).
D) $0.

Question

Quizplus · Accepted Answer

Mickey must pay at least 90% of his current year's tax liability to avoid a penalty, which is $9,000 (90% of $10,000).

Mickey, a Calendar Year Taxpayer, Was Not Required to File