Occasionally, I write about tax topics for other business sites. Below is a preview of an article I wrote for Create Hype.
Estimated taxes for the third quarter of 2012 (June 1 to August 31) are due on September 17, so now is the time to gather your income and expense documents and start calculating!
What are Estimated Taxes?
Estimated tax payments are used to pay taxes on income not subject to withholding. Anyone who has been an employee of someone else has seen the amounts taken out of his or her paycheck for tax purposes. Part of this is your income tax withholding. The IRS requires employers to retain, or withhold, amounts from paychecks to cover the employee’s income tax liability.
This situation is slightly different for people who are self-employed. As there is no employer to withhold income from paychecks, self-employed individuals are required to submit their own withholdings quarterly.