Estimated Tax
If you're an employee, your employer withholds a part of your salary as taxes and sends it to the IRS and your state tax authority. Thus you pay taxes as you go.
But if you are self employed, or if you have income beyond what you are paid as a salary, from which taxes are not withheld, you need to estimate the amount of taxes that you owe and pay these taxes as you go. Usually you are required to pay these taxes quarterly.
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