Jill's AGI was $120,000 last year, her federal tax liability was $40,000. In the currentyear Jill, an employee, expects her W-2 commissions to decrease and would like topay in the least amount of tax to avoid penalties. During the first quarter Jill made$20,000 and withheld $3,000 if you assume a 25% tax rate how much, if any,estimated tax payment should Jill pay by 4/15 of the current year.

As per IRS guidelines, individuals are generally required to make estimated tax payments if they…

Answered: estimated tax payment should Jill pay…

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estimated tax payment should Jill pay by 4/15 of the current year.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter26: Tax Practice And Ethics

Section: Chapter Questions

Problem 31P

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How much taxable income should each of the following taxpayers report? a. Kimo builds custom surfboards. During the current year, his total revenues are 90,000, and he incurs 30,000 in expenses. Included in the 30,000 is a 10,000 payment to Kimos five-year-old son for services as an assistant. b. Manu gives hula lessons at a local bar. During the current year, she receives 9,000 in salary and 8,000 in tips. In addition, she engages in illegal behavior, for which she receives 10,000.
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Lisa records nonrefundable Federal income tax credits of 65,000 for the year. Her regular income tax liability before credits is 190,000, and her TMT is 150,000. a. What is Lisas AMT? b. What is Lisas regular income tax liability after credits?
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