estimated tax return
Noun: A preliminary tax form filed by individuals or businesses to pay income tax in installments throughout the current tax year. It is used when the amount of tax being withheld from income (e.g., from wages) is insufficient to cover the total expected annual tax liability. This "return" is an estimate and declaration of expected yearly income and tax owed, leading to scheduled payments.
The term "estimated tax return" refers specifically to the form and the process of declaring and paying tax on income not subject to sufficient withholding. It is commonly used for self-employed individuals, investors, or those with significant freelance income. * Filing an estimated tax return: The act of submitting the required form (such as IRS Form 1040-ES in the United States) and making a payment. * Freelancers must file an estimated tax return each quarter to avoid penalties. * Making an estimated tax payment: The payment associated with the return. * Her accountant calculated the payment due with her estimated tax return.
- "to be subject to estimated tax returns": Describes a taxpayer's obligation to file these returns.
- Independent contractors are typically subject to estimated tax returns.
- The concept is often discussed in the context of avoiding an underpayment penalty, which is a charge for not paying enough tax during the year through withholding and/or estimated payments.
- Estimated Tax (n): The tax amount paid in advance through the estimated tax return process.
- He set aside money for his estimated tax.
- Quarterly Estimated Tax (n): A common term emphasizing the required payment schedule (usually four times a year).
- Declaration of Estimated Tax (n): A formal synonym for the filing requirement.
- Provisional tax return (used in some other tax jurisdictions).
- Advance tax payment (focuses more on the payment aspect than the return document).
- To make estimated payments: The action of paying tax via the estimated tax return system.
- You will need to make estimated payments quarterly.
- Underpayment of estimated tax: A formal term for failing to pay enough through this system, which may result in a penalty.
- return required of a taxpayer whose tax withheld from income does not meet the tax liability for the year