declaration of estimated tax

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Sure! Let’s break down the term "declaration of estimated tax" so it’s easy to understand.

Definition

A declaration of estimated tax is a statement that a person or business makes to the government to show how much tax they think they will owe for the year. This is important for people who have not had enough tax taken out of their paychecks or who earn money in other ways (like from self-employment), so they don’t owe a big amount at the end of the year.

Usage Instructions

• When to Use: You need to make a declaration of estimated tax if you believe that the amount of tax taken from your income is less than what you will owe at the end of the year.
• How to Use: You usually fill out a specific form (like the IRS Form 1040-ES in the United States) and send it to the tax authority along with any payment you owe.

Example

• Simple Example: If you are a freelance writer and you expect to earn $40,000 this year, but your clients don’t withhold any taxes, you might fill out a declaration of estimated tax to pay the government in advance.

Advanced Usage

• Business Context: Businesses often have to make a declaration of estimated tax if they expect to owe a significant amount of tax. This helps them manage cash flow and avoid surprises when tax time comes.

Word Variants

• Noun: Declaration
• Noun: Estimated Tax
• Verb: Declare (to make a declaration)
• Adjective: Estimated (an approximation of what is likely to happen)

Different Meaning

While declaration of estimated tax specifically refers to taxes, the word declaration can also mean any formal statement or announcement, such as a declaration of independence.

Synonyms

• Tax estimate
• Tax forecast
• Estimated tax payment

Idioms and Phrasal Verbs

There aren't specific idioms or phrasal verbs directly related to "declaration of estimated tax," but here are a couple related to taxes in general: - "Pay your dues": This means fulfilling your obligations, like paying taxes. - "Tax break": This refers to a reduction in the amount of tax you owe.

Summary

In summary, a declaration of estimated tax is an important document for anyone who doesn’t have enough taxes taken out of their income throughout the year. By making this declaration, you help ensure that you pay the right amount of tax on time and avoid penalties later.

Academic

Noun

1. return required of a taxpayer whose tax withheld from income does not meet the tax liability for the year

Synonyms

• estimated tax return