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What to Know About Quarterly Tax Payments

  • Writer: Brian R. Schobel, CPA
    Brian R. Schobel, CPA
  • 13 hours ago
  • 2 min read

Running your own business means wearing many hats — and one of them is “tax planner.” If you earn income that isn’t automatically taxed (like self-employment, freelance, or small business earnings), you may need to make quarterly estimated tax payments. Here’s what that means and how to stay on top of it without losing your mind.


Why Quarterly Payments Exist

Unlike traditional employees who have taxes withheld from each paycheck, business owners and freelancers must pay taxes as they earn income. The IRS expects you to send in payments four times a year — typically in April, June, September, and January — to cover income tax and self-employment tax. If you skip them or pay too little, you might face penalties at tax time. But staying on schedule can save you stress — and money.


How to Know if You Need to Pay

You’ll likely need to make quarterly payments if:

  • You expect to owe more than $1,000 in taxes for the year.

  • Your income doesn’t have tax withheld (think: freelance gigs, rental income, or side hustles).


Not sure? A tax professional can help estimate what you owe.


Tips to Stay on Track

  • Estimate your income early. Use last year’s numbers as a starting point, then adjust if business picks up.

  • Set aside a portion of each payment you receive. A common rule of thumb is 25–30% for taxes.

  • Use IRS Form 1040-ES or an online tax portal to submit payments quickly and securely.

  • Mark your calendar. Treat each due date like a mini “tax day” so nothing slips through the cracks.

  • Check your state rules. Some states have their own quarterly payment schedules.


Plan Ahead, Stay Prepared

Quarterly tax payments may feel like a hassle, but they’re really a budgeting tool in disguise. By setting aside taxes throughout the year, you’ll avoid a big surprise come April — and keep your business finances healthy.


Start small, stay consistent, and you’ll turn tax time into just another to-do you’ve already checked off.


Need help estimating your quarterly payments? Consider working with an accountant to simplify the process.


 
 
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