If you are self-employed, a freelancer, or a business owner earning income without tax withholding, such as 1099 earnings, you may be required to pay quarterly estimated taxes to avoid penalties and interest. Understanding your tax obligations can help you stay compliant and plan your cash flow effectively.
Who Needs to Pay Quarterly Taxes?
The IRS requires estimated tax payments if you expect to owe at least $1,000 in taxes for the year after subtracting withholdings and credits. This applies to:
- Freelancers and independent contractors
- Sole proprietors and small business owners
- Gig economy workers (rideshare drivers, consultants, etc.)
- Individuals with significant investment income, rental income, or other non-wage earnings
2025 Quarterly Tax Payments
Mark your calendar with these important dates to avoid penalties:
- April 15, 2025 – Q1 Payment Due
- June 15, 2025 – Q2 Payment Due
- September 15, 2025 – Q3 Payment Due
- January 15, 2026 – Q4 Payment Due (for 2025 earnings)
Looking for a quick reference? Check out our newsletter that lists all the quarterly tax deadlines in one convenient place.
How to Calculate and Pay Estimated Taxes
To estimate your quarterly tax payments, calculate your total expected income, deductions, and credits for the year. The IRS Form 1040-ES can help with this process. Payments can be made online through the IRS Direct Pay system, the Electronic Federal Tax Payment System (EFTPS), or by mailing a check.
Avoid Penalties and Planning Ahead
Failure to make estimated tax payments on time can result in penalties and interest charges. A good rule of thumb is to pay at least 90% of your current year’s tax liability or 100% of your previous year’s tax liability (110% for high-income earners) to avoid penalties.
We’re Here to Help
Staying on top of your quarterly tax obligations is essential for maintaining financial health and avoiding costly penalties. If you’re unsure how to calculate your estimated payments or want to build a strategy tailored to your income, L.V. Browne, CPA, is here to help. Properly managing your estimated taxes not only protects you from unexpected fees but also gives you peace of mind as your business grows. Reach out to L.V. Browne, CPA, for expert guidance or schedule a free consultation.
