3. 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?

yes they are required to increase their withholding tax by $5000

Explanation:

Paula and Simon will have to increase their withholding or make estimated tax payments to avoid underpayment penalty if the fall inside these two categories

current tax withheld for current year ≤ 90% of the current tax liability or

current tax withheld ≤ 110% of the previous year tax liability

current tax liability = $200000

last year tax liability = $170000

tax withheld = $175000

90% of $200000 = $180000:  Is  greater than tax withheld ( $175000 )

110% of $170000 = $187000 :   Is greater than tax withheld ( $175000 )

To avoid underpayment penalty Paula and Simon should increase their withholding by at least $5000 or make estimated quarterly payments of $1250

explanation:

a gas is not used in hydraulic machines as the fluid because gas is easily compressible and so if a gas is used, the energy would mostly go into compressing a gas. therefore a liquid is used in hydraulic machines as the fluid.

i believe the answer would have to be a dependable person