Quarterly Estimated Taxes 101: What They Are and How to Stay Ahead

Let’s talk about everyone’s favorite surprise (kidding, kind of): quarterly estimated tax payments.

If you’re self-employed, a contractor, a small business owner, or earn side income that isn’t taxed automatically, you may need to make estimated tax payments to the IRS four times a year.

And yes, it can feel like you just sent one in—because you probably did. But staying on top of these payments can save you from penalties, interest, and a whole lot of last-minute stress.

💡 What Are Quarterly Estimated Taxes?

When you earn income that doesn’t have taxes withheld—like freelance gigs, business revenue, or rental income—the IRS still wants its share.

Instead of paying one big chunk at tax time, the IRS wants you to pay throughout the year. These payments go toward:

• Federal income tax

• Self-employment tax

• Other applicable taxes (like the Net Investment Income Tax)

📅 2025 Quarterly Tax Payment Deadlines

Here’s when each payment is due:

Quarter	Income Period	Payment Due Date
Q1	Jan 1 – Mar 31	April 15, 2025
Q2	Apr 1 – May 31	June 16, 2025
Q3	Jun 1 – Aug 31	September 15, 2025
Q4	Sep 1 – Dec 31	January 15, 2026

📌 If the date falls on a weekend or holiday, the IRS will bump it to the next business day.

🤔 Do I Need to Pay Estimated Taxes?

You probably do if:

• You’re self-employed, a freelancer, or own a business

• You earn rental income, dividends, or investment income

• You expect to owe $1,000 or more when you file your return

You probably don’t need to pay quarterly if:

• You’re a W-2 employee with enough tax withheld

• You owed less than $1,000 last year and this year’s income hasn’t changed much

🔢 How Much Should I Pay?

This is where it helps to work with a tax pro. But here’s the general idea:

You want to pay at least 100% of last year’s taxes (110% if you made over $150,000), or 90% of what you’ll owe this year, whichever is smaller.

This is called your safe harbor amount, and it helps you avoid penalties—even if your income fluctuates.

You can:

• Pay the same amount each quarter

• Use the annualized income method if your income varies (especially useful for seasonal or project-based work)

💻 How to Make Your Payments

You’ve got options:

• IRS Direct Pay: directpay.irs.gov – Simple, fast, and free

• EFTPS: eftps.gov – Great for scheduling payments in advance

• Mail a check: Old-school, but reliable if done early

🗓️ Pro tip: Put all four tax deadlines on your calendar—or automate payments—so you don’t forget.

🧘🏽‍♀️ Final Thoughts

Quarterly taxes aren’t fun, but they don’t have to be overwhelming either.

The key is staying organized and proactive.

✔️ Work with a professional

✔️ Keep a bookkeeping system in place

✔️ Set up payment reminders or automation

✔️ Check in each quarter as your income changes

If you need help figuring out your safe harbor amount, organizing your finances, or making sense of IRS notices, we’re here to help.

The 1310 Group is all about making the financial side of your business feel less stressful and more empowering—so you can focus on building what you love.