19. Taxpayers with self-employment income who also have Form W-2 wage income fro

Question

19. Taxpayers with self-employment income who also have Form W-2 wage income from employment may be able to avoid making estimated tax payments by filing a Form W-4 and increasing the amount of their withholding. (Points : 1)         True
        False Question 20.20. Mark the incorrect answer. Estimated income tax payments: (Points : 1)         Need not be filed if the estimated tax, after subtracting withholding, can reasonably be expected to be more than $1,000.
        If inadequate, may result in nondeductible penalties.
        May be based on the amount of the tax liability for the prior year.
        Are made in 4 installments on April 15, June 15, and September 15 of the tax year and on January 15 of the following year. Question 21.21. In 2016, the maximum amount of wages subject to the Social Security portion of the FICA tax is $118,500. (Points : 1)         True
        False 19. Taxpayers with self-employment income who also have Form W-2 wage income from employment may be able to avoid making estimated tax payments by filing a Form W-4 and increasing the amount of their withholding. (Points : 1)         True
        False

Explanation / Answer

19. True

(By voluntarily increasing  tax withholding on the W-4, it is possible to avoid having to make an additional lump-sum tax payment while filing tax)

20. Are made in 4 installments on April 15, June 15, and September 15 of the tax year and on January 15 of the following year.

(The IRS requires that individuals estimate what their total income tax for the year will be and divide it into four equal installments. The installments must be paid on: April 15, June 15, Sept. 15 and Jan. 15,)

21. true. In year 2016 and 2015 it was 118500. the same in 2017 is 127,200

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