Question

In: Accounting

Mary is self-employed for 2019. Mary estimates her required annual estimated tax payment for 2019 to...

Mary is self-employed for 2019. Mary estimates her required annual estimated tax payment for 2019 to be $4,000. Mary had a $500 overpayment of last year's taxes which she will apply against her first quarter estimated payment.

a. How much should Mary pay with her first quarter estimated tax voucher?

b. When is the first quarter payment due?

c. How much should Mary pay with her third quarter estimated tax voucher?

d. When is the third quarter payment due?

Solutions

Expert Solution

Sol: The Values Provided in the question are as follows:
       Mary's Annual Estimated Tax Payment for 2019 = $4000

       Overpayment of Last Year's Taxes = $500

a) Mary's First Quarter Estimated Tax Vocher is

    Annual Tax Payment = $4000

First Quarter Tax Payment $4000*3/12 = $1000

    Mary's Last Year's Overpeyment = $500

   Total First Quarter Estimated Tax = $1500

b) First Quarter Payment Due Date

    In a Year have 4 Quarter period. Start 1st January – 31st March (Three months in a Year, 90 Days or 91   Days)

    First Quarter Payment on 31st March

c) Third Quarter Tax Payment

   Annual Tax Payment = $4000

   Third quarter months 9

   Third Quarter Estimated Tax Payment = $4000*9/12 = $3000

d) Third Quarter Payment Due Date

   1st July to September 30th

   Third Quater Payment on 30 th September.

   

ekkarill92 answered 1 year ago
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