eBook Print Item Problem 9-6 Estimated Payments (LO 9.2) Kana is a single wage earner with no dependents and taxable inc

[answerhappygod]

Ebook Print Item Problem 9 6 Estimated Payments Lo 9 2 Kana Is A Single Wage Earner With No Dependents And Taxable Inc 1 (142.91 KiB) Viewed 29 times

eBook Print Item Problem 9-6 Estimated Payments (LO 9.2) Kana is a single wage earner with no dependents and taxable income of $168,700 in 2021. Her 2020 taxable income was $155,000 and tax liability was $31,375. Calculate Kana's 2021 income tax liability and the minimum required 2021 annual payment necessary to avoid any penalty. Round your answers to two decimal places. Click here to access the income tax rate schedules. Kana's 2021 income tax liability: 34,999.50 X Kana's minimum required 2021 annual payment necessary to avoid any penalty: 31,499.55 X Feedback Check My Work O Self-employed taxpayers are not subject to withholding; however, they must make quarterly estimated tax payments. Taxpayers with large amounts of interest, dividends, and other income not subject to withholding are also generally required to make estimated payments. Any individual taxpayer who has estimated tax for the year of $1,000 or more, after subtracting withholding, and whose withholding does not equal or exceed the "required annual payment," must make quarterly estimated payments. The required annual payment is the smallest of three statutory amounts based on either the current year's tax, preceding year's tax, or the tax based on the annualized of current year income. A special rule applies to individuals with adjusted gross income in excess of $150,000 for the previous year. Payments are made in four installments on April 15, June 15, and September 15 of the tax year, and January 15 of the following year, based on the taxpayer's estimate of the amount of the tax liability for the year. Check My Work 0 more Check My Work uses remaining. Previous Next All work saved. Save and Exit Submit Assignment for Grading M W 31 2:58