What are Estimated Taxes?

Almost half the people who answered our recent poll about estimated taxes said "What are quarterly taxes?" Estimated taxes are paid throughout the year, avoiding penalties at the end of the year. Aside from keeping away from those penalties, they are also a great way to split up your tax payments rather than owing one large sum in April. Paying quarterlies is fast and easy, and can even be done online. Calculating them is also quick, as it can be based on your previous year's income.