Mr. and Mrs. Eller's AGI last year was $287,300, and their total tax was $70,268. The couple's safe-harbor estimate of current year tax is $77,295.

Question

Quizplus · Accepted Answer

The safe-harbor rule for high-income taxpayers (those with an AGI over $150,000) requires them to pay the lesser of 90% of the tax shown on the current year's return or 110% of the tax shown on the prior year's return. Since $70,268 (last year's tax) * 110% = $77,294.80, and they estimated $77,295, they meet the safe-harbor requirement.

Mr and Mrs