Beth and Jay Project the Following Taxes for the Current $\begin{array}{lr}\text { Regular tax } & \$ 50,000 \\\text { AMT } & 10,000 \\\text { Self employment tax } & 12,000\end{array}$

question 110

Essay

Beth and Jay project the following taxes for the current year:
$\begin{array}{lr}\text { Regular tax } & \$ 50,000 \\\text { AMT } & 10,000 \\\text { Self employment tax } & 12,000\end{array}$ How much in estimated tax payments (including withholding from wages and quarterly estimated payments) should the taxpayers pay this year in order to avoid underpayment penalties under the following assumptions regarding the preceding tax year?
a. Preceding tax year-AGI of $140,000 and total taxes of $36,000.
b. Preceding tax year-AGI of $155,000 and total taxes of $48,000.

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Definitions:

Coolie Trade

The system of indentured labor that transported workers, mainly from India and China, to various colonies to work in plantations or construction projects during the 19th and early 20th centuries.

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A region in the United States characterized by its historical frontier period, exploration, and expansion during the 19th century.

Psychokinesis

The purported ability to move or manipulate objects with the mind without physical interaction.

Synesthesia

A brain disorder where activating one sense or cognitive route automatically causes unintended experiences in another sense or cognitive route.