McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 35

{Planning} This year, Paula and Simon (married filing jointly) estimate that their tax liability will be $200,000.Last year, their total tax liability was $170,000.They estimate that their tax withholding from their employers will be $175,000.Are Paula and Simon required to increase their withholdings or make estimated tax payments this year to avoid the underpayment penalty? If so, how much?