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Estimated Tax

   Also found in: Dictionary/thesaurus, Legal 0.01 sec.
Estimated tax
Tax to be paid quarterly on income that is not subject to withholding tax, including self-employed income, investment income, alimony, rent, and capital gains.

Estimated Tax
Taxes paid to the IRS on a quarterly basis on all income not subject to withholding. Estimated taxes most prominently affect self-employed persons, but they must also be paid on alimony, rents, and capital gains. Persons who file estimated taxes must also file 1040 forms and, if necessary, pay any taxes they may have underpaid on their estimated taxes.

estimated tax
The estimated tax liability on income that is not subject to withholding. Individuals with even moderate investment income are generally expected to file a declaration of estimated tax and to pay quarterly installments on the estimated tax liability.

Estimated Tax
The amount of tax a taxpayer expects to owe for the year after subtracting expected amounts withheld and the amount of any expected credits.


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For tax years beginning in 2009 only, the American Recovery and Reinvestment Act of 2009 (ARRA) reduced the amount of estimated tax that individual taxpayers with income from small businesses must pay.
111-5 (ARRA), instituted changes to the rules governing the amount of estimated tax that individual taxpayers with income from small businesses must pay.
However, Newton-le-Willows-born Mr Burnham passed the sum on to the Commons Fees Office and then used the money to improve his new flat in Lambeth, avoiding an estimated tax bill of up to pounds 6,665.
 
 
 
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