What amount would be subject to the penalty for the underpayment of estimated taxes?
What amount would be subject to the penalty for the underpayment of estimated taxes?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Kate, an unmarried taxpayer with income
exclusively from wages, filed her initial income tax
return for Year 8. By December 31, Year 8, Kate's
employer had withheld $16,000 in federal income
taxes and Kate had made no estimated tax
payments. On April 15, Year 9, Kate timely filed an
extension request to file her individual tax return
and paid $300 of additional taxes. Kate's Year 8
income tax liability was $16,500 when she timely
filed her return on April 30, Year 9, and paid the
remaining income tax liability balance.
What amount would be subject to the penalty for
the underpayment of estimated taxes?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F669e847b-4254-4f1d-a25f-ed5618f90f41%2F339a1524-2357-4d69-bad6-f7a48d2a0558%2Fqg77ts_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Kate, an unmarried taxpayer with income
exclusively from wages, filed her initial income tax
return for Year 8. By December 31, Year 8, Kate's
employer had withheld $16,000 in federal income
taxes and Kate had made no estimated tax
payments. On April 15, Year 9, Kate timely filed an
extension request to file her individual tax return
and paid $300 of additional taxes. Kate's Year 8
income tax liability was $16,500 when she timely
filed her return on April 30, Year 9, and paid the
remaining income tax liability balance.
What amount would be subject to the penalty for
the underpayment of estimated taxes?
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