Determine Julie exposure to the penalty for underpayment tax

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Problem - Julie, being self-employed, is required to make estimated payments of her tax liability for the year. Her tax liability for 2018 was $25,000, and her AGI was less than $150,000. For 2019, 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, 2019 $4,500

June 17, 2019 2,800

September 16, 2019 4,100

January 2020 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.

Required -

a. Determine Julie's exposure to the penalty for underpayment of estimated tax.

b. The same as part (a), except that Julie's tax liability for 2018 was $15,960.

Reference no: EM132669642

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