How to Nail Down Your Estimated Tax Payments

If you are self-employed or expect to generate significant income this year from investments or from the sale of real estate, then you probably will have to pay estimated taxes for 2008.

What are estimated taxes?

Well, the Internal Revenue Service wants you to pay at least 90% of your tax liability by the time you file your taxes April 15. If you get paid as an employee, your employer handles prepayment of federal and state taxes by withholding a portion of every paycheck. But if you are self-employed or a sole proprietor, you must account for that prepayment on your own.

Here's what you need to know about how to do it: ...