Estimated taxes are periodic tax payments that individuals and businesses make to the government throughout the year, typically on income that is not subject to withholding tax. This type of income may include money made through self-employment, rental income, interest, dividends, or other sources where taxes are not automatically withheld. Additionally, if you expect to owe at least $1,000 in taxes after subtracting withholding and refundable credits on your income that has already had tax withheld, you may need to make estimated tax payments.

So, you've taken the plunge and started your own business—awesome! Running your own show brings a world of opportunities, but it also comes with extra responsibilities, like dealing with your finances. One critical aspect of financial responsibility for business owners is making quarterly estimated tax payments.