What Are Quarterly Estimated Taxes?

What Are Quarterly Estimated Taxes?

If you are self-employed or a contract worker and you are generating a profit, you may need to pay estimated quarterly taxes.

Quarterly estimated taxes are periodic tax payments made by individuals and business owners who earn income that doesn't have taxes withheld from it via payroll. This includes self-employment income, freelance earnings, rental income, and other sources not covered by traditional employment. Business owners may need to pay federal and state estimated taxes, depending on your state's tax laws and requirements.

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