Brittandbaby: How much tax should he send to the IRS for the first quarter?
Darrell owns a consulting business and has an estimated annual income of $ 63,000. His
Social Security tax is 12.4%, Medicare is 2.9%, and his estimated federal income tax rate
is 22%. How much quarterly estimated tax must Darrell send to the IRS for the first
quarter?
A. $ 5,874.75 C. $ 15,750.00
B. $ 13,860.00 D. $ 23,498.99
Answers and Views:
Answer by j-man
He should send in 25% of what he is expecting to make in 2008. If Darrell estimates too low, then he could be subject to interest and penalties.
In this case, if he sent in $ 5,874.75 then the IRS would accept that as a good estimated payment. If Darrell expects to make less money in 2008, if the tax rates go down, or if he decides to close his business, then less money could be sent in.
Darrell should also make sure that his tax bill of $ 23,499 for 2007 is paid before he starts paying 2008’s taxes.
Answer by v bIn real life, None of the above.
Using only the numbers they gave you, the math is incredibly simple, but I don’t do homework. Add them up and remember that quarter means 4 and you send in payments more than 1 time.
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