A Taxpayer with an AGI of $300,000 for 2014 Pays

question 120

Multiple Choice

A taxpayer with an AGI of $300,000 for 2014 pays estimated taxes.The taxpayer can avoid an underpayment penalty by paying:

• A) At least 90% of his/her 2014 tax liability if his/her 2013 adjusted gross income was less than $200,000 regardless of filing status.
• B) At least 90% of his/her 2014 tax liability ratably over four quarterly payments.
• C) At least 100% of his/her 2014 tax liability ratably over four quarterly payments.
• D) At least 110% of his/her 2014 tax liability ratably over four quarterly payments.

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Definitions:

Demand Curve

A chart depicting how the price of a product correlates with the amount of it that buyers are prepared and can afford to buy at different price points.

Consumers

Individuals or groups who use goods and services generated within the economy.

Tax

Mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Good

A tangible item or service that can be bought, sold, or traded.