estimated tax

Definition of "estimated tax"
  1. It's a type of tax that certain individuals, corporations, or trusts pay usually every quarter for income that is not withheld
How to use "estimated tax" in a sentence
  1. They found it hard to calculate the estimated tax for their income not subject to withholding.
  2. Understanding how estimated tax works helped them make better financial decisions.
  3. To avoid potential penalties, he decided to pay his estimated tax quarterly.

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