estimated taxes
Prepaid income dues
Estimated taxes are quarterly tax payments made directly to the government by people whose income isn't subject to automatic withholding—typically self-employed workers, freelancers, and investors.
Since no employer deducts taxes from their paychecks, they must calculate and pay what they expect to owe throughout the year: I set aside thirty percent of each invoice for estimated taxes.
Missing these payments triggers penalties at tax time.
- quarterlyFour times annually
- due dateWhen payment is required
- IRSFederal tax collector
- self-employedWorking independently, not hired
- freelancerSelf-employed service provider
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