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Need Some Deductions for 2012?

Don't overlook these!

10 Oddball Tax Deductions

11 Most Overlooked Tax Deductions

Updated for 2012

Who Pays Estimated Taxes?

Estimated taxes are paid by individuals who either:

  1. Expect to receive income not subject to tax withholding or
  2. Do not expect a sufficient amount of taxes to be withheld from their income

Sole proprietors and general partners:

Unlike employees who have federal income taxes, social security, and Medicare taxes withheld from their pay by their employer, sole proprietors and general partners are not subject to tax withholding on their business income.

Here's Why:

Sole proprietors and general partners are self-employed; they are not considered employees of their business for income tax purposes or self-employment tax purposes (for retirement plan contribution purposes a self-employed person is considered an employee of his/her own business).

A self-employed person makes quarterly estimated tax payments to cover the following taxes:

Farmers and fishermen:

Estimated tax requirements are different for farmers and fisherman. See Publication 505, Tax Withholding and Estimated Tax, for more information.

C corporations:

C corporations also pay estimated taxes.

Examples of income that may not be subject to withholding include:

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Estimated Taxes: Who Does Not Pay Estimated Taxes?

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