Business & Self-Employment

Quarterly Estimated Taxes

Periodic tax payments made throughout the year by people whose income isn't subject to withholding.

Self-employed individuals, freelancers, and some investors typically must pay estimated taxes four times a year rather than having tax withheld from a paycheck, since the IRS expects tax to be paid as income is earned. Underpaying can result in a penalty, even if the full amount owed is eventually paid when filing the annual return.

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