Why make estimated tax payments? Because it helps the self-employed person avoid falling hopelessly behind on their tax liabilities.
This is part 2 of an explanation of estimated tax payments. In Part 1, I detailed the math behind the tax formula. In Part 2, I’ll explain why a taxpayer might want to make estimated tax payments. Here’s the reason: if you’re fully self-employed, you don’t draw a paycheck in the traditional sense. Since you don’t [...]
Iowa allows a deduction for federal income taxes paid. This includes taxes withheld from your paycheck, as well as any estimated tax payments you made during the year and any additional federal taxes you might have paid when you filed your federal return for the prior year. This deduction is simple if your only federal tax [...]