BarBRanch has had taxable income of $450,000, $570,000, $760,000 and $680,000 in years 2013 through 2016, respectively.

BarBRanch has had taxable income of $450,000, $570,000, $760,000 and $680,000 in years 2013 through 2016, respectively. What were the equal minimum quarterly estimated tax payments for 2016 that BarBRanch should have made in 2016 to avoid any penalty?

     a. $57,676

     b. $57,800

     c. $64,600

     d. $170,000

ANSWER a. Tax on $680,000 is $231,200. Minimum quarterly payment = 25% ($231,200 - $499) = $57,675.25 rounded up to 57,676 as the underpayment must be less than $500.

Question: Where is $499 come from??