Estimated Tax Payments
TaxGlossary term
Definition
Quarterly tax payments made by self-employed individuals, freelancers, and others who don't have taxes withheld from their income. Payments are due in April, June, September, and January to avoid underpayment penalties.
Related terms
- Withholding TaxThe portion of an employee's wages that an employer sends directly to the government as a prepayment of income tax. The amount withheld depends on income, filing status, and the W-4 form submitted to the employer.
- Tax BracketThe range of income subject to a certain income tax rate in the progressive US tax system. Higher income levels are taxed at higher rates (marginal tax rates).
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