Question

Which of the following correctly reflects current rules regarding estimated tax payments for individuals?

a. Employees are not subject to the estimated tax payment provisions.
b. Any penalty imposed for underpayment is deductible for income tax purposes.
c. Married taxpayers may not make joint estimated tax payments unless they file a joint income tax return.
d. No quarterly payments are required if the taxpayer's estimated tax is under $1,000.
e. None of the above.

Answer 1

The correct answer is None of the above (option e).

Step-by-step explanation:

The correct answer to the question is None of the above (option e).

Option a is incorrect because employees are subject to the estimated tax payment provisions if they expect to owe at least $1,000 in taxes after subtracting withholdings and credits.

Option b is incorrect because the penalty imposed for underpayment is not deductible for income tax purposes.

Option c is incorrect because married taxpayers can make joint estimated tax payments even if they file separate income tax returns.

Option d is incorrect because quarterly payments are required for individuals whose estimated tax is expected to be $1,000 or more.