Definition of Estimated Tax
Tax computed in the first instance without fully accurate and complete information but which is filed only as a preliminary matter to be followed by a final tax return. Tax payments are made in instalments based on the estimate and then credited to taxpayer when he files his final return. Federal law dictates when declarations of estimated tax must be filed ( e.g. quarterly). I.R.C. § 6015(a). Declarations and payment of estimated taxes are normally made by non-wage earners since, unlike wage earners, their taxes Eire not withheld from each paycheck by the employer. See also Declaration of estimated tax.
That's the definition of Estimated Tax in Black's Law Dictionary 6th Edition. Courtesy of Cekhukum.com.
