A requirement for taxpayers who do not have adequate tax withheld regularly, often applicable to self-employed individuals. It ensures that taxpayers can manage their tax liability by paying estimated taxes quarterly.
This is a filed statement that a taxpayer must submit to the IRS that includes an estimate of the amount of income tax owed for a particular year. It is typically used by individuals who do not have their taxes automatically withheld from their paycheck.
Estimated tax refers to income taxes paid quarterly by taxpayers on income not subject to withholding taxes. These payments are projections of ultimate tax liabilities for the taxable period.
