Question

This year, Santhosh, a single taxpayer, estimates that his tax liability will be $95,500. Last year, his total tax liability was $13,500. He estimates that his tax withholding from his employer will be $33,500.

a. Is Santhosh required to increase his withholding or make estimated tax payments this year to avoid the underpayment penalty?

    

multiple choice

• Yes

• No

b. By how much, if any, must Santhosh increase his withholding and/or estimated tax payments for the year to avoid underpayment penalties?

Rasheed works for Company A, earning $431,000 in salary during 2020.

Assuming he is single and has no other sources of income, what amount of FICA tax will Rasheed pay for the year? (Round your intermediate and final answer to the nearest whole dollar amount.)

This year Luke has calculated his gross tax liability at $2,000. Luke is entitled to a $2,700 nonrefundable personal tax credit, a $1,650 business tax credit, and a $700 refundable personal tax credit. In addition, Luke has had $2,550 of income taxes withheld from his salary. (Input the amount as a positive value.)

What is Luke’s net tax due or refund?

    

Answer 1