Question

Maria is self-employed and must submit estimated quarterly tax payments. Her predicted total tax liability for the current year will be $40,000, and her current withholdings are $18,287. She is advised to determine her quarterly payments by subtracting her current withholdings from her predicted total tax liability and dividing by four. What is a good estimate for Maria to use for her quarterly payments?

Answer 1

Given:

Maria predicted total tax liability for the current year will be $40,000

Her current withholdings are $18,287

She is advised to determine her quarterly payments by subtracting her current withholdings from her predicted total tax liability and dividing by four.

So, applying the operations to the given values

`(40,000-18,287)/(4)=(21,713)/(4)=5,428.25`

So, the answer will be:

The best estimation for Maria to use for her quarterly payments = $5,428.25