Quarterly Estimated Taxes

If you expect to owe $1,000 or more in federal taxes, the IRS requires four estimated payments per year. These cover income tax and self-employment tax. Miss them and you pay an underpayment penalty — even if you pay everything by April.

Due Dates

April 15 (January through March income), June 15 (April through May), September 15 (June through August), January 15 of the following year (September through December). Deadlines falling on weekends or holidays move to the next business day.

How to Calculate What You Owe

Simplest approach: pay 100% of last year’s tax liability divided by four. This safe harbor method protects you from underpayment penalties regardless of what you actually earn this year.