An Individual with AGI Equal to or Less Than $150,000

question 50

Multiple Choice

An individual with AGI equal to or less than $150,000 in the prior year may generally avoid penalties for underpayment of estimated tax in each of the following cases with the exception of

• A)estimated tax is less than $1,500.
• B)90% of the tax due for the current year is paid.
• C)90% of the tax due for the current year is paid when computed on an annualized basis.
• D)100% of the actual tax liability for the prior year is paid.

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Definitions:

Well-Reasoned Judgments

Judgments that are logically sound and based on careful consideration and evaluation of all relevant information.

Critical Thinking

Meticulously examining and assessing an affair with the goal of establishing a perspective.

Good Thinking

The practice of reasoning and decision-making that is logical, informed, and reflective, often leading to effective solutions.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment; involves asking questions, analyzing arguments, and identifying biases.