Key Takeaways

• • If you expect to owe $1,000+, you must make quarterly tax payments.
• • Penalties can reach 25% plus daily compounded interest.
• • IRS safe harbor: pay 90% of current year or 100% of prior year (110% if high income).

What Are Estimated Taxes?

Estimated taxes are quarterly payments made by individuals with income not subject to withholding—like freelancers, small business owners, landlords, or investors.

Why They Matter

If you fail to pay quarterly, the IRS will charge heavy penalties and interest—even if you pay in full when filing your annual return.

When Payments Are Due

Q1 (Jan–Mar): April 15; Q2 (Apr–May): June 15; Q3 (Jun–Aug): September 15; Q4 (Sep–Dec): January 15 (following year).

How to Pay

IRS Direct Pay, EFTPS with auto-withdrawals, Debit/Credit card (with small processing fee), or By mail using Form 1040-ES voucher.

Smart Tax Strategies

Open a separate savings account just for tax money; Save a percentage of every payment you receive; Use online calculators to adjust payments as your income changes.

Next Step

Not sure how much to pay or when? Book your free consultation today and we’ll calculate your estimated taxes together.