Your client wants to avoid any penalty for underpayment of estimated taxes by making timely deposits.Determine the amount of the minimum quarterly estimated tax payments required to avoid the penalty.Assume your client's adjusted gross income last year was $140,000.

Question

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A) Use the lesser of 90% of this year's tax or 100% of last year's tax.
 11ea83d0_ee01_9adc_908c_0b5ddc37731d_TB5378_00 This amount is less than 25% of last year's tax liability ($40,000) minus the amount withheld ($9,000) or $7,750.

Your Client Wants to Avoid Any Penalty for Underpayment of Estimated