Estimated taxes are required on quarterly bases from self-employed taxpayers (and others) that do not have their employer withdrawing tax payments weekly from their paychecks. This taxing system is also used for taxpayers that have won expensive prizes, and for taxpayers who have received untaxed alimony payments. The United States government requires taxes from all types of income. For the most part, the estimated taxes taxing system is used for all manner of income that is received from sources that are not participating in proper payday withholdings. Jobs that are worked ‘under-the-counter’ without withholdings report taxes in this category every 3 months. Taxpayers often experience problems while guessing at the amount of taxes that should be paid on each quarterly payment on the estimated tax schedule. When in doubt, it is always better to go with the larger figure in estimated taxes owing and receive a refund later. It is never a good idea to under-estimated taxes owing and risk a fine or tax audit. An easy way to prepare estimated taxes is through the use of an online tax preparation site. The way that the computerized program is set-up ensures that every consideration has been addressed by the taxpayer so that all IRS requirements have been accomplished. The online tax preparation site programs are very simple to understand and use. To start an online estimated taxes return, the taxpayer will need to be ready to provide information from their previous year IRS filings (if any), the family social security information, and about their current sources of income that will be claimed. Everything else is provided as you need it while using the online program for estimated taxes. Normally, taxpayers who plan to owe more than $1,000 from self-employment income or other untaxed income are expected to participate in paying their estimated taxes every three months. If you expect that your income tax withholdings from all employment or income tax sources will cover your current tax year amounts due, then estimated taxes are probably not needed.
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