estimated tax return

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Explanation of "Estimated Tax Return"

Definition: An "estimated tax return" is a document that a taxpayer submits to the government to report their expected income, deductions, and tax liability for the year. This is often used by people who do not have enough tax withheld from their paychecks and need to pay estimated taxes throughout the year.

Usage Instructions:

• An estimated tax return is usually filed by individuals who are self-employed or have other income sources (like rental income) that do not have taxes automatically deducted.
• Taxpayers typically submit their estimated tax returns quarterly, meaning four times a year.

Example:

• If you are a freelance graphic designer and you expect to earn $40,000 this year, you would fill out an estimated tax return to calculate how much tax you should pay in advance, so you don’t owe a large sum at the end of the year.

Advanced Usage:

• Individuals must calculate their estimated tax based on their expected income and then pay this amount to avoid penalties.
• It’s important to keep track of your income and expenses throughout the year to make accurate estimates.

Word Variants:

• Tax Return: This is a broader term that refers to any document filed with the tax authorities that reports income, expenses, and other pertinent tax information.
• Estimated Taxes: This refers to the payments made based on the estimated tax return.

Different Meanings:

• "Return" in a different context can also mean to give back something (e.g., "I will return the book to the library.").

Synonyms:

• Estimated Tax Payment: This term is often used interchangeably with "estimated tax return" but refers specifically to the actual payment made.
• Quarterly Tax Payment: Refers to the payments made every three months based on the estimated tax return.

Idioms and Phrasal Verbs:

• "Pay your dues": This idiom can mean to fulfill your obligations, including paying taxes on time.
• "Catch up on taxes": This phrasal verb means to make payments that are overdue.

Conclusion:

Understanding the concept of an "estimated tax return" is important for managing finances, especially if you work for yourself or have income that doesn’t have taxes automatically taken out.

Academic

Noun

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

Synonyms

• declaration of estimated tax