Definitions for "estimated tax"
Estimated amount in taxes due to be paid in the coming year, short any tax credits.Corporations,...
(Federal) : Estimated tax payments must be made by individuals who expect to owe tax of $1,000 or more on their personal income tax return and who do not have at least 90% of the tax withheld by an employer. Sole proprietors, owners of limited liability companies, members of partnerships, and S corporation shareholders may need to pay estimated taxes. Payments are made four times a year on form 1040-ES, Estimated Tax for Individuals. For information, see Publication 505, Tax Withholding and Estimated Tax.
Tax to be paid quarterly on income that is not subject to withholding tax, including self-employed income, investment income, alimony, rent, and capital gains.