Which of the following is NOT an exception to the penalty for failure to pay ess

Question

Which of the following is NOT an exception to the penalty for failure to pay esstimated tax? A. The total balance due after withholding is less than $1,000, B. The total balance due after withholding is less than $5,000, C. the taxpayer paid (through withholding and/or timely estimated tax payments) as least 90% of the current year's tax liability, D. The taxpayer paid (through withholding and/or timely estimated tax payments) at least 100% of the previous year's tax liability, or $110% of the taxpayer's adjusted gross income for the previous year was $150,000 or more

Explanation / Answer

The provisions to avoid penalty for failure to pay estimated tax are : If taxpayers either owe less than $1,000 in tax after subtracting their withholding and refundable credits, or if they paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller.

Thus, the following is NOT an exception to the penalty for failure to pay esstimated tax:

B. The total balance due after withholding is less than $5,000.

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