Compute Trudy quarterly estimated tax payment

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Problem - Trudy's AGI last year was $200,000. Her Federal income tax came to $65,000, paid through both withholding and estimated payments. This year, her AGI will be $300,000, with a projected tax liability of $50,000, all to be paid through estimates. Trudy wants to pay the least amount of tax that does not incur a penalty.

Required -

a. Ignore the annualized income method. Compute Trudy's quarterly estimated tax payment schedule for this year.

b. Assume instead that Trudy's AGI last year was $100,000 and resulted in a Federal income tax of $20,000. Determine her quarterly estimated tax payment schedule for this year.

Reference no: EM132664442

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