--- title: "Estimated tax payments: Definition and Sources | Tax Glossary" description: "Estimated tax payments are advance payments of income tax and self-employment tax that people make during the year when no employer withholds tax from their..." url: https://wallacecpa.multisites.ai/glossary/estimated-tax-payments publisher: Wallace CPA phone: +1-877-682-1171 quote: https://wallacecpa.multisites.ai/contact --- Federal tax # Estimated tax payments Estimated tax payments are advance payments of income tax and self-employment tax that people make during the year when no employer withholds tax from their income. Tax is due as income arrives. An employer handles this with withholding. A self-employed person, a landlord or an investor has no employer to do it, so the IRS expects payments during the year instead. These payments cover income tax and [self-employment tax](https://wallacecpa.multisites.ai/glossary/self-employment-tax). Paying too little or too late can bring a penalty, even when a refund is due at filing. Owners of an [S corporation](https://wallacecpa.multisites.ai/glossary/s-corporation) or LLC often set their own wage withholding to cover this. The [tax planning page](https://wallacecpa.multisites.ai/services/tax-planning) covers how to size the payments and set the quarterly dates for each tax year. [Wallace CPA can helpTax planning](https://wallacecpa.multisites.ai/services/tax-planning) ## Related terms - [Self-employment tax](https://wallacecpa.multisites.ai/glossary/self-employment-tax) - [Tax extension](https://wallacecpa.multisites.ai/glossary/tax-extension) - [S corporation](https://wallacecpa.multisites.ai/glossary/s-corporation) - [Penalty abatement](https://wallacecpa.multisites.ai/glossary/penalty-abatement) ## Sources 1. [IRS: Estimated taxes](https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes) ## Talk to Wallace CPA Call the Southlake office and say what you need: a return, an IRS letter, your books or a new business. Have the notice or last year's return nearby if you have one. [Call (877) 682-1171](tel:+1-877-682-1171)[Send a message](https://wallacecpa.multisites.ai/contact) 180 State Street, Suite 225, Southlake, TX 76092