What estimated taxes means
Estimated taxes are payments self employed people make during the year toward their income and self-employment tax, since no employer withholds for them.
Also called quarterly taxes, estimated tax payments.
Where it shows up in your business
Missing them can bring penalties. A simple habit, moving a share of each payment to a tax account, makes the quarterly payment easy.
Work it out
- Free calculator: Quarterly estimated tax calculator
- Money: Money guides for contractors