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04/03/2008 at 03:09 PM 6909File ID: 624 THE FELIX COMPANIES THE LE LUX COMPANIES 3230 NORTH HIGH STREET COLUMBUS, OH 43202 (614)2676992 Fax: (614)2676997 Written By: David Le Lux #Honor: CHEROKEE
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A preliminary estimate is an estimation of tax liability that a taxpayer submits to the tax authority before the actual tax return is due.
Taxpayers who expect to owe a certain amount of tax at the end of the year, typically those with self-employment income or significant investment income, are required to file a preliminary estimate.
To fill out a preliminary estimate, taxpayers must calculate their expected tax liability for the year based on income, deductions, and credits, and complete the appropriate form as provided by the tax authority.
The purpose of a preliminary estimate is to help taxpayers pay taxes throughout the year and avoid owing a large sum during the tax filing season.
The preliminary estimate must report the taxpayer's expected income, deductions, credits, and the anticipated tax liability.
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