Estimated Tax


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Related to Estimated Tax: estimated tax return

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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References in periodicals archive ?
If a taxpayer did not submit a revised W-4 withholding form to their employer or increase their estimated tax payments, they may have not had enough tax withheld during the tax year.
United States : IRS expands penalty waiver for those whose tax withholding and estimated tax payments fell short in 2018; key threshold lowered to 80 percent
As a result, some taxpayers could have paid too little tax during the year, if they did not submit a properly-revised W-4 withholding form to their employer or increase their estimated tax payments.
IRS waives penalty for many whose tax withholding and estimated tax payments fell short in 2018
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
The combination of the larger mutual fund capital gain distributions and the applicable increased tax rate has necessitated increasing estimated tax payments and, for retirees living on fixed income, has reduced after-tax funds.
Mid-year tax planning adjustments for your clients
As an alternative to the required annual payment methods in the preceding paragraph, taxpayers can pay estimated tax by paying a specified percentage of the current year's tax, computed by annualizing the taxable income for the months in the taxable year ending before the month in which the installment falls due.
Part I: Federal income taxation
However, the household worker, even though classified as an employee, must still file an estimated tax return and pay the estimated tax currently.
Chapter 6: Calculation of tax
* 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
taxpayers facing a penalty for underpayment of estimated tax last year, the Internal Revenue Service urges taxpayers to plan ahead, understand their options and avoid the penalty when they file in early 2019.
United States : Avoid penalty for underpayment of taxes; IRS says check withholding, make estimated payments

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