Tax Preparation Tax Withholding and Estimated Taxes

Question 1

Which IRS form do employees complete to instruct their employer on how much federal income tax to withhold from each paycheck?

Accepted Answer

Form W-4

Answer

Form W-2

Answer

Form 1040-ES

Answer

Form 941

Question 2

For calendar year taxpayers, when is the first quarterly estimated tax payment due?

Accepted Answer

April 15

Answer

January 15

Answer

June 15

Answer

September 15

Question 3

Under the IRS safe harbor rule, a taxpayer can avoid an underpayment penalty by paying at least what percentage of the current year's tax liability?

Accepted Answer

90%

Answer

75%

Answer

80%

Answer

95%

Question 4

Who is generally required to make quarterly estimated tax payments to the IRS?

Accepted Answer

Individuals who expect to owe at least $1,000 after withholding and credits

Answer

All W-2 employees regardless of withholding

Answer

Anyone who filed a federal tax return last year

Answer

Taxpayers with gross income exceeding $100,000

Question 5

Which IRS form is used to calculate and submit quarterly estimated tax payments?

Accepted Answer

Form 1040-ES

Answer

Form W-4

Answer

Form 1099-ES

Answer

Form 2210

Question 6

How is the IRS underpayment penalty calculated?

Accepted Answer

The federal short-term interest rate plus 3 percentage points on the underpaid amount

Answer

A flat $500 fee per quarter

Answer

10% of the total underpaid amount for the year

Answer

The taxpayer's marginal tax rate applied to the underpaid balance

Question 7

When is the fourth (final) quarterly estimated tax payment due for calendar year taxpayers?

Accepted Answer

January 15

Answer

October 15

Answer

November 15

Answer

December 31