Estimated Tax Payments 2021


Estimated Tax Payments 2021

Estimated tax payments refer to prepayments made throughout the year towards annual income tax liability. For instance, if your estimated tax for 2021 is $5,000, you’d make four quarterly payments of $1,250.

Estimated tax payments ensure timely tax payments, avoiding penalties. They also prevent large, lump-sum payments at tax time. Historically, the Tax Reform Act of 1986 made estimated tax payments mandatory for self-employed individuals and those with significant income from non-payroll sources.

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Estimated Tax Payments 2024


Estimated Tax Payments 2024

Estimated tax payments refer to the quarterly payments individuals make towards their income tax liability for the current tax year, if they expect to owe $1,000 or more when they file their annual return.

Making estimated tax payments helps ensure that taxpayers pay their taxes evenly throughout the year and avoid potential penalties or interest charges when they file their return.

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