When you work for an employer, taxes are withheld from every paycheck. But if you're self-employed, a freelancer, or a small business owner, that responsibility falls on you — and the IRS expects you to pay as you earn through quarterly estimated tax payments.
Estimated payments cover both income tax and self-employment tax. They're generally due in April, June, September, and January. Missing them — or underpaying — can lead to penalties, even if you pay your full balance when you file.
The right amount depends on your expected income for the year. A good rule of thumb is to set aside 25–30% of your net self-employment income, but the exact figure varies. Reviewing your numbers each quarter keeps you on track and avoids surprises.
We help self-employed clients calculate and schedule their estimated payments as part of year-round tax planning. Reach out for a consultation and we'll make sure you're paying the right amount at the right time.