How to Compute Required Installment Payments of 2021 Tax for NB Incorporated in 2022
What is the process to calculate the required installment payments of 2021 tax for NB Incorporated in 2022?
What are the required installment payments if NB's 2022 taxable income is $485,000, $723,000, and $1,312,000?
Required Installment Payments Calculation
a. If NB's 2022 taxable income is $485,000: The required installment payments would be $25,462.50.
b. If NB's 2022 taxable income is $723,000: The required installment payments would be $37,957.50.
c. If NB's 2022 taxable income is $1,312,000: The required installment payments would be $68,880.
Calculating Required Installment Payments
To compute the required installment payments of 2021 tax in each of the following cases for NB Incorporated in 2022, we need to follow these steps:
a. If NB's 2022 taxable income is $485,000:1. Determine the estimated tax liability for 2022 based on the taxable income.
2. Calculate the tax liability for the year by applying the tax rate, assuming it is 21%.
3. Divide the tax liability by four to get the required installment payments.
b. If NB's 2022 taxable income is $723,000:1. Follow the same steps as in case (a) to calculate the required installment payments.
c. If NB's 2022 taxable income is $1,312,000:1. Use the same steps as above to determine the required installment payments for this taxable income.
By following the steps above, you can accurately calculate the required installment payments for NB Incorporated based on its taxable income in 2022.