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What is Quarterly Tax?

Estimated tax payments made four times per year by freelancers to cover income and self-employment tax owed to the IRS.

What Are Quarterly Estimated Tax Payments?

Unlike employees who have taxes withheld from each paycheck, freelancers must pay estimated taxes directly to the IRS (and often to their state) four times per year. These payments cover income tax and self-employment tax on income earned in each quarter.

Who Must Pay Quarterly?

You must pay quarterly estimated taxes if you expect to owe at least $1,000 in federal taxes for the year after subtracting withholding and credits.

Due Dates (2024-2025)

QuarterIncome CoversDue Date
Q1January 1 – March 31April 15
Q2April 1 – May 31June 15
Q3June 1 – August 31September 15
Q4September 1 – December 31January 15

How Much to Pay

Use the safe harbor rule to avoid underpayment penalties:

  • Pay 100% of last year's tax liability (110% if prior year AGI exceeded $150,000)
  • OR pay 90% of the current year's estimated tax liability
  • The safe harbor based on prior year is easiest to calculate: divide last year's total tax bill by 4.

    How to Pay

    Use the IRS Direct Pay system at irs.gov/directpay or set up an EFTPS account for scheduled payments.

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