How To Pay Quarterly Taxes When You're Self-Employed

Quarterly taxes are payments you send to the IRS four times a year instead of waiting until April

If you receive a 1099 form, you are self-employed in the IRS's eyes, which means no employer is withholding taxes from your paychecks. Quarterly estimated tax payments let you pay what you owe throughout the year rather than facing a large bill on tax day. The IRS calls these estimated tax payments, and you make them on a schedule they set: mid-April, mid-June, mid-September, and mid-January of the following year.

You do not have to make quarterly payments if your total tax bill for the year will be under $1,000, or if you expect a refund. But if you earn a steady income from 1099 work, quarterly payments prevent penalties and keep you from scrambling to find money in April.

Key Takeaways

• The IRS sets four payment dates each year: typically April 15, June 15, September 15, and January 15, though the exact date shifts if it falls on a weekend or holiday.
• You calculate what to pay by estimating your total income, subtracting deductions, and dividing the resulting tax by four — or you can use last year's tax bill as a shortcut.
• You pay through the IRS Direct Pay system (free, no account needed), the Electronic Federal Tax Payment System (EFTPS, requires enrollment), or by mailing a check with Form 1040-ES.
• Missing a payment or underpaying can result in penalties and interest, even if you pay the full amount when you file your tax return in April.
• If your income changes during the year, you can recalculate and adjust your remaining payments rather than sticking to your original estimate.

The four payment dates and how to find the exact important date

The IRS publishes a calendar each year with the official due dates. For 2024, the dates are April 15, June 17, September 16, and January 16, 2025. These dates shift because the IRS observes federal holidays and avoids weekends — if a due date falls on a Saturday, you pay on Friday; if it falls on a Sunday or a federal holiday, you pay on Monday.

The best way to confirm the current year's dates is to visit irs.gov and search for "estimated tax payment dates" or check the instructions that come with Form 1040-ES. You can also set phone reminders or calendar alerts for the 15th of April, June, September, and January, then verify the exact date a few weeks before each payment is due.

If you miss a payment important date, you can still pay late, but the IRS will charge interest and may assess a penalty for underpayment. The penalty applies even if you pay everything owed by April 15 when you file your return.

How to calculate what you owe each quarter

The simplest method is to use last year's tax bill. If you paid $4,000 in federal income tax last year, divide that by four: you would pay $1,000 each quarter. This works well if your income is stable. The IRS calls this the safe harbor rule — if you pay 100 percent of last year's tax (or 90 percent of this year's tax, whichever is smaller), you will not face an underpayment penalty, even if you end up owing more when you file.

If your income is higher this year or you expect it to change, you can calculate more precisely. Estimate your total 1099 income for the year, subtract your business deductions (home office, equipment, mileage, supplies), and subtract the standard deduction or your itemized deductions. Multiply the result by your tax rate — usually 12 percent federal plus your state rate, though the exact rate depends on your total income. Divide that number by four to get your quarterly payment.

Form 1040-ES, which the IRS provides free, includes a worksheet that walks you through this calculation step by step. You do not need to file the form itself — it is just a guide. Keep a copy for your records.

Three ways to send your payment to the IRS

IRS Direct Pay is the fastest and most straightforward option. Go to irs.gov, click "Pay Your Taxes," and select "Direct Pay." You enter your payment amount, the quarter you are paying for, and your bank account information. The payment is free, takes a few minutes, and you receive a confirmation number when ready. The IRS processes it within one business day.

EFTPS (Electronic Federal Tax Payment System) is another online option that requires advance enrollment. You set up an account at eftps.gov, link your bank account, and schedule payments. EFTPS is free and lets you schedule payments up to 120 days in advance, which is useful if you want to automate all four quarters at once. The downside is the enrollment process takes a few days, so you cannot use it for your first payment if you have not enrolled yet.

Paper check or money order is the slowest option but works if you do not have online banking. You write a check or money order, include Form 1040-ES (the payment voucher part), and mail it to the IRS address listed in the form instructions. The address varies by state. Mail your payment at least one week before the due date to may support it arrives on time. The IRS date-stamps mail based on the postmark, so a payment postmarked by the important date counts as on time even if it arrives late.

What happens if you underpay or miss a payment

The IRS charges two things: interest and a penalty. Interest accrues on any unpaid tax from the due date until you pay, currently at a rate set quarterly (it was 8 percent annually in 2024, but this changes). The underpayment penalty is separate and applies if you did not pay enough during the year, even if you pay the full amount by April 15.

You can avoid the penalty if you meet the safe harbor rule: pay 100 percent of last year's tax bill, or 90 percent of this year's tax bill, whichever is smaller. If you do not meet this threshold, the IRS calculates the penalty based on how much you underpaid and for how long. A $500 underpayment for one quarter might result in a $10 to $20 penalty; a $2,000 underpayment across all four quarters could be $50 to $100 or more.

If your income dropped during the year and you overpaid, you can claim the overpayment as a credit on your tax return or request a refund. You do not lose money by paying too much — you straightforward get it back.

Adjusting your payments if your income changes

You do not have to stick with your original estimate if your circumstances change. If you landed a big contract in July and now expect to earn twice as much, recalculate your total tax for the year and adjust your remaining payments. If you lost a client and expect to earn less, you can lower your remaining payments to avoid overpaying.

To adjust, estimate your new total income for the year, recalculate your tax using the same method as before, and divide the remaining tax by the number of quarters left. For example, if you have already paid two quarters and now expect to owe $6,000 total instead of $4,000, you would owe $2,000 more. Divide that by two (the remaining quarters) and pay $1,000 extra each quarter.

There is no form to file for this adjustment — you straightforward pay the new amount when the next due date arrives. Keep notes on why you changed the amount in case the IRS asks during an audit.

Self-employment tax versus income tax

Your quarterly payments cover federal income tax only. As a self-employed person, you also owe self-employment tax, which funds Social Security and Medicare. Self-employment tax is 15.3 percent of your net profit (12.4 percent for Social Security, 2.9 percent for Medicare), and you pay it when you file your annual return on Schedule SE, not quarterly.

Some people include self-employment tax in their quarterly estimate to avoid a surprise bill in April. To do this, calculate your expected net profit, multiply by 0.153, divide by four, and add that to your income tax payment each quarter. This is optional — you can pay self-employment tax entirely in April if you prefer — but spreading it across the year is often easier on cash flow.

State income tax, if your state has one, may also require quarterly payments. Check your state's tax authority website for their schedule and payment methods, as they differ from federal rules.

Frequently Asked Questions

Do I have to make quarterly payments if I only have a small side income?

No. If your total tax bill for the year will be under $1,000, you do not have to make quarterly payments. You can pay the full amount when you file your return in April. If you are unsure whether you will hit $1,000, it is safer to make at least one or two small payments to stay under the penalty threshold.

What if I pay quarterly taxes but then owe more in April?

This means you underpaid during the year. You pay the remaining balance when you file your return. You may also owe an underpayment penalty unless you meet the safe harbor rule (100 percent of last year's tax or 90 percent of this year's tax). To avoid this next year, increase your quarterly payments or recalculate mid-year if your income rose.

Can I pay all four quarters at once instead of four separate times?

Yes. You can pay the full year's amount in one lump sum on the first due date (April 15) if you want. However, the IRS prefers quarterly payments because they spread the tax burden throughout the year. Paying all at once does not trigger a penalty, but it does not reduce one either — you still owe interest on any underpayment from the date it was due.

What if I did not know I needed to make quarterly payments and missed the important date?

Pay as soon as you realize the mistake. The IRS will charge interest from the original due date, but paying when ready stops interest from accruing further. When you file your return, the IRS will calculate the underpayment penalty. You can request a waiver of the penalty if you have a reasonable cause (such as not knowing the requirement), though waivers are not may provide.

Do I need to file Form 1040-ES or just pay?

You do not file Form 1040-ES. It is a worksheet and guide only. You use it to calculate your payment, then pay through Direct Pay, EFTPS, or by mailing a check with the payment voucher portion of the form. The form itself stays in your records.