Question

An individual taxpayer's tax return included the following:

Regular tax before tax credits $5000

Amount paid with current year extension $1,000

Current year estimated tax payments $6,000

Federal income tax withheld $1000

What amount, if any, is the taxpayer's overpayment?

		$3,000
		$2,000
		$1,000
		$0

Answer 1

	Amount in $
Amount paid with current year extension	1,000
Add: Current year estimated tax payments	6,000
Add: Federal income tax withheld	1,000
Less: Regular tax before tax credits	5,000
Tax Payer Overpayment	3,000
Correct answer is option 1 (i.e. $ 3,000 ).