Estimated Tax

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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 ?
Safe harbors for corporate estimated taxes or R&D expenditures would make the law simpler, he stated.
The new rules make the preparation of estimated taxes a two-step process.
Corporate income and corporate estimated taxes under Regs.
Alternative Two: In the event the taxpayer overpays its estimated taxes, interest (at the rate prescribed by section 6621(a)(1) of the Code) would be paid to the taxpayer on the amount of the overpayment from (i) the later of the due date of the estimated taxes or the date payment is made, to (ii) the date such overpayment is refunded (or applied to a subsequent liability).
The penalty on underpayment of 1992 estimated taxes will be waived only on the portion of the underpayment due to the changes in the withholding tables that President Bush provided earlier this year.
Fourth quarter 2001 estimated taxes will be due January 15, 2002.
Exhibit: Sample unprotected estimated tax payment notice Important Notice To: Client From: Partner Date: m/d/y Re: Unprotected estimated tax payments Please note that the combination of your projected withholding and/or estimated tax payments for 200X is not the required amount to "protect" you from penalty for underpayment of estimated taxes.
Since Congress needs the increased revenue and has made compliance difficult, the individual is quite likely to be subject to penalty interest charges for underpaid estimated taxes.
3) Estimated taxes originally due after September 11, 2001
6655 imposes a penalty for the underpayment of estimated taxes by a corporation.
The revenue provision of the bill would have required pass-through entities that choose a fiscal year and whose average income per 2% owner is less than $250,000 to pay estimated taxes of 34%.
25 /PRNewswire/ -- Upper-income individuals, who have for years paid estimated taxes, may soon need to acquire a knack for predicting the future.

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