Estimated Taxes

Estimated taxes refer to the system in which taxpayers are required to estimate their taxes for the year and make periodic payments to the IRS, typically quarterly, rather than paying all at once when filing their tax returns.

This system applies to self-employed individuals, freelancers, and those with significant investment income. The purpose of estimated taxes is to ensure that taxpayers meet their tax obligations throughout the year rather than waiting until the end of the year to pay their taxes.