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Estimated net income is the approximation of an individual or entity's income after deductions and adjustments.
Individuals or entities who earn income that is not subject to withholding, such as self-employed individuals or business owners, are required to file estimated net income.
To fill out estimated net income, individuals or entities must calculate their projected income for the year, subtract any deductions or adjustments, and report the final amount to the tax authorities.
The purpose of estimated net income is to ensure that individuals or entities pay their taxes throughout the year, rather than in one lump sum at the end of the year.
Information such as projected income, deductions, adjustments, and tax payments made throughout the year must be reported on estimated net income.
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