## Answers

Ans:

**a.** Trudy's total estimated tax payments are $ ________under the current-year method and $_________ under the prior-year method.

| |

Tax Estimated | $85,950 |

Percentage payable | 90% |

Tax Payment | $77,355 |

| |

Tax Paid | $114,600 |

Percentage payable | 110% |

Tax Payment | $126,060 |

**b.** Assume instead that Trudy's AGI last year was $130,000 and resulted in a Federal income tax of $26,000. Her total estimated tax payments are $ ________under the current-year method and $__________ under the prior-year method.

| |

Tax Estimated | $85,950 |

Percentage payable | 90% |

Tax Payment | $77,355 |

| |

Tax Paid | $26,000 |

Percentage payable | 100% |

Tax Payment | $26,000 |

Note:

If prior year Adjusted Gross Income was $150,000 or less, then avoid a penalty if pay either 90 percent of this year's income tax liability or 100 percent of your income tax liability from last year

.