Julie, a self-employed individual, is required to make estimated payments of her tax liability for the year. Her tax liability for 2020 was $25,000, and her AGI was less than $150,000. For 2021, Julie ultimately determines that her income tax liability is $18,000. During the year, however, she made the following payments, totaling $13,000: April 15, 2021 $4,500 June 15, 2021 2,800 September 15, 2021 4,100 January 18, 2022 1,600 Total paid $13,000 Because Julie prepaid so little of her ultimate income tax liability, she now realizes that she may be subject to the penalty for underpayment
Julie, a self-employed individual, is required to make estimated payments of her tax liability for the year. Her tax liability for 2020 was $25,000, and her AGI was less than $150,000. For 2021, Julie ultimately determines that her income tax liability is $18,000. During the year, however, she made the following payments, totaling $13,000: April 15, 2021 $4,500 June 15, 2021 2,800 September 15, 2021 4,100 January 18, 2022 1,600 Total paid $13,000 Because Julie prepaid so little of her ultimate income tax liability, she now realizes that she may be subject to the penalty for underpayment
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Julie, a self-employed individual, is required to make estimated payments of her tax liability for the year. Her tax liability for 2020 was
$25,000, and her AGI was less than $150,000. For 2021, Julie ultimately determines that her income tax liability is $18,000. During the
year, however, she made the following payments, totaling $13,000:
April 15, 2021
$4,500
June 15, 2021
2,800
September 15, 2021
4,100
January 18, 2022
1,600
Total paid
$13,000
Because Julie prepaid so little of her ultimate income tax liability, she now realizes that she may be subject to the penalty for underpayment
of estimated tax.
If an amount is zero, enter "0".](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7b24a8f3-2f2d-4507-ba99-780362deeadd%2F26e625e8-a74c-474b-a34e-929972963b03%2Fl6mpojd_processed.png&w=3840&q=75)
Transcribed Image Text:Julie, a self-employed individual, is required to make estimated payments of her tax liability for the year. Her tax liability for 2020 was
$25,000, and her AGI was less than $150,000. For 2021, Julie ultimately determines that her income tax liability is $18,000. During the
year, however, she made the following payments, totaling $13,000:
April 15, 2021
$4,500
June 15, 2021
2,800
September 15, 2021
4,100
January 18, 2022
1,600
Total paid
$13,000
Because Julie prepaid so little of her ultimate income tax liability, she now realizes that she may be subject to the penalty for underpayment
of estimated tax.
If an amount is zero, enter "0".
![b. If Julie's tax liability for 2020 was $15,960, determine Julie's penalty for underpayment of estimated tax, if any.
Julie's required annual payment for estimated taxes should have been $
15,960 v, and each quarterly installment would have
been $
3,990 V.
The underpayments are as follows.
First installment (April 15, 2021): $
Second installment (June 15, 2021): $
680 V
Third installment (September 5, 2021): $
Fourth installment (Januaury 15, 2022): $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7b24a8f3-2f2d-4507-ba99-780362deeadd%2F26e625e8-a74c-474b-a34e-929972963b03%2Fdezbmnf_processed.png&w=3840&q=75)
Transcribed Image Text:b. If Julie's tax liability for 2020 was $15,960, determine Julie's penalty for underpayment of estimated tax, if any.
Julie's required annual payment for estimated taxes should have been $
15,960 v, and each quarterly installment would have
been $
3,990 V.
The underpayments are as follows.
First installment (April 15, 2021): $
Second installment (June 15, 2021): $
680 V
Third installment (September 5, 2021): $
Fourth installment (Januaury 15, 2022): $
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education