Estimated Tax Payments

Estimated tax payments are periodic payments made by individuals or businesses to the government throughout the year, intended to cover income taxes owed on earnings that aren’t withheld automatically, such as self-employment income, investments, or rental income. Typically due quarterly, these payments help prevent a large tax bill at year's end and possible penalties. The amount is based on the expected annual income, deductions, and credits. Making estimated payments ensures accurate tax compliance and better cash flow management, especially for those with income outside traditional withholding methods.