A taxpayer had AGI of $300,000 in 2017 and AGI of $250,000 in 2016.When filing her 2017 return,she expects her unpaid tax liability to be at least $1,000.She must make estimated payments equal to the smaller of 90% of the tax shown on her 2017 return or

Question

Quizplus · Accepted Answer

A) The correct answer is that she must make estimated payments equal to the smaller of 90% of the tax shown on her 2017 return or 110% of the tax on her 2016 return because her 2016 AGI was more than $150,000. This rule applies to taxpayers whose AGI exceeds $150,000 in the preceding year, requiring them to pay 110% of the previous year's tax to avoid underpayment penalties.

A Taxpayer Had AGI of $300,000 in 2017 and AGI