Amelida Expects to Earn $145,000 of AGI and $125,000 of Taxable

question 133

Multiple Choice

Amelida expects to earn $145,000 of AGI and $125,000 of taxable income this year.She is concerned about underpayment penalties.Because of a substantial bonus,her prior year AGI was $155,000 and her taxable income was $135,000.She will not be subject to underpayment penalties for the current year if her estimated taxes equal or exceed any of the following criteria except

• A)the estimated payments total at least 90% of the tax due for the current year.
• B)the estimated payments total at least 100% of the tax due for the prior year.
• C)the estimated payments total at least 110% of the tax due for the prior year.
• D)the estimated tax is less than $1,000.