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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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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References in periodicals archive

Thus, they may be required to make estimated tax payments in the subsequent year.

Strategies for minimizing estimated tax payments

Here are penalty abatement tips for the estimated tax penalty:

Abating IRS penalties: ways to reduce or even eliminate common assessments

* And for corporations: The installment due date for 25% of any corporate estimated tax payment otherwise due in September 2003 has been changed to Oct.

Avoiding year-end tax traps: making the right moves before December 31 can shave thousands off your bill to Uncle Sam

Whereas prior research has taken the taxpayer's prepayment position as exogenous, this study extends the literature by incorporating the estimated tax payment decision into a tax compliance game.

The interrelationship between estimated tax payments and taxpayer compliance

Years ending on or after Tax Rate July 1, 2001 1.33% July 1, 2002 0.67% July 1, 2003 0 For estimated tax purposes, New Jersey uses a "last year's facts--this year's rates" safe harbor.

NEW JERSEY S CORPORATION TAX REPEALED

In November 1991, Congress repealed the estimated tax safe harbor for certain individuals and small businesses.

Return to safe harbor

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