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.
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.
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.
Thus, they may be required to make estimated tax payments in the subsequent year.
Here are penalty abatement tips for the estimated tax penalty:
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.
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.
However, the household worker, even though classified as an employee, must still file an estimated tax return and pay the estimated tax currently.
* 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.
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.
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.
In November 1991, Congress repealed the estimated tax safe harbor for certain individuals and small businesses.
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.

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