Investor Glossary-estimated taxInvestor Glossary-estimated taxInvestor Glossary-estimated taxInvestor Glossary-estimated taxInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Estimated Tax

The HTML to link to this page
 

Estimated tax is tax that a self-employed individual or a company must estimate and pay to the Internal Revenue Service. For non-self-employed people, taxes are withheld by the employer and then paid to the IRS each pay period. For the self-employed, such regularity is not required, though they must pay their estimated tax themselves. To pay estimated tax, one must first project one's earnings for the year, then calculate the respective portion for each quarter. Estimated tax must be paid four times per year, as long as there is income earned. One pays one's estimated tax with IRS Form 1040ES. If not enough estimated tax is paid, a penalty will be levied. The calculations to determine whether a penalty must be paid on estimated tax will involve comparisons to the previous year's taxes paid.



Rate this estimated tax definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, annual return, 144a, dividends payable, diluted share, 1031 exchange, APR, retained earnings, open position, 401a, 1035 exchange, irrevocable trust, labor relations, stock split, covered put, deferred revenue, liquidity ratio, LIBOR, margin rate, current ratio, per diem, implied volatility, required rate of return, minority interest, phantom income, limit order, deferred tax, cancelled check, inflation, risk management, EBITDA, class C shares, Key Rate Duration, option premium, stock market close, real GDP, ex-dividend date, balance sheet, Zero Cost Collar, quality assurance, in escrow, debt service coverage, FTSE, ex-dividend, wholly-owned subsidiary, reverse mortgage, FICO score, VIX, command economy


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use