Kana is a single wage earner with no dependents and taxable

Kana is a single wage earner with no dependents and taxable income of $155,000 in 2017. Her 2017 withholding was $32,000. Her 2016 taxable income was $151,000 and tax liability was $35,317.

Calculate Kana’s 2017 income tax liability and the minimum required 2017 annual payment necessary to avoid any penalty. Round your answers to two decimal places.

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1. Kana’s 2017 income tax liability: $

2. Kana’s minimum required 2017 annual payment necessary to avoid any penalty:

Solution

1.

2. If minimum 90% of the Tax liability is paid, Kana can avoid penalty

Therefore, Minimum Tax to be paid to avoid the penalty is 28,744.65

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