Juanita is a single and is self-employed. Juanita owed $1,300 in taxes on her 2019 return and expects her taxes to be the same for 2020. Which of the following statements is correct? Select one: a. Juanita will not be required to pay estimated tax payments for 2020. b. Juanita will not be subject to self-employment tax. c. Juanita should take out a loan to pay her 2020 taxes when she files the return. d. Juanita should make estimated tax payments to avoid an underpayment penalty.
Juanita is a single and is self-employed. Juanita owed $1,300 in taxes on her 2019 return and expects her taxes to be the same for 2020. Which of the following statements is correct? Select one: a. Juanita will not be required to pay estimated tax payments for 2020. b. Juanita will not be subject to self-employment tax. c. Juanita should take out a loan to pay her 2020 taxes when she files the return. d. Juanita should make estimated tax payments to avoid an underpayment penalty.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Juanita is a single and is self-employed. Juanita owed $1,300 in taxes on her 2019 return and
expects her taxes to be the same for 2020. Which of the following statements is correct?
Select one:
a. Juanita will not be required to pay estimated tax payments for 2020.
b. Juanita will not be subject to self-employment tax.
c. Juanita should take out a loan to pay her 2020 taxes when she files the return.
d. Juanita should make estimated tax payments to avoid an underpayment penalty.
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