The Four Quarterly Payment important date Each Year

The IRS sets four fixed dates each year when self-employed people, business owners, and others with income not subject to withholding must send in estimated tax payments. These dates are April 15, June 15, September 15, and January 15 of the following year. Each payment covers the income you earned during a three-month period, called a quarter.

The quarters do not follow the calendar exactly. The first quarter runs January through March and is due April 15. The second quarter covers April through May and June, due June 15. The third quarter is July, August, and September, due September 15. The fourth quarter spans October, November, and December, due January 15 of the next year.

If a due date falls on a weekend or federal holiday, the IRS moves the important date to the next business day. For example, if April 15 is a Saturday, you have until Monday, April 17. The IRS website and your tax software will show you the actual important date for your state, since some states observe holidays that the federal government does not.

Key Takeaways

  • Quarterly payments are due on April 15, June 15, September 15, and January 15, with each payment covering three months of income.
  • You must make quarterly payments if you expect to owe $1,000 or more in taxes for the year and do not have enough tax withheld from other income sources.
  • You can pay online through IRS Direct Pay or the Electronic Federal Tax Payment System (EFTPS), by mail with Form 1040-ES, or by phone.
  • Missing a quarterly payment important date may result in underpayment penalties, even if you pay the full amount when you file your annual tax return.
  • The IRS calculates your required payment based on your prior year's tax liability or your current year's estimated income, whichever method results in a lower payment.

Who Must Make Quarterly Payments

You are required to make quarterly payments if you are self-employed, own a business, receive income from rental properties, or have other income that does not have taxes withheld automatically. This includes freelancers, contractors, gig workers, and people with investment income above certain thresholds.

The IRS requires quarterly payments if you expect to owe $1,000 or more in federal income tax for the year after accounting for any tax credits you will claim. If you have a spouse and file jointly, the threshold is also $1,000 combined. Some people avoid quarterly payments by having their employer withhold extra tax from their regular paycheck, but most self-employed people have no withholding option and must pay quarterly.

If you are unsure whether you need to make quarterly payments, the IRS Form 1040-ES includes a worksheet that walks you through the calculation. You can also contact a tax professional or use tax software that asks about your income sources and tells you whether you have a requirement.

How to Calculate Your Quarterly Payment Amount

The IRS gives you two methods to calculate what you owe each quarter. The prior-year method takes your total tax liability from last year's return, divides it by four, and that is your quarterly payment. The current-year method estimates your income, deductions, and tax for this year, then divides the result by four.

You use whichever method results in a lower payment, which means you have flexibility if your income is changing. If you earned $80,000 last year and expect to earn $50,000 this year, the current-year method will lower your payments. If you expect a big income year, the prior-year method protects you from overpaying early in the year.

Form 1040-ES provides worksheets for both methods and walks you through the math step by step. Tax software often does this calculation for you automatically once you enter your income and deduction estimates. The form also includes a table of safe-harbor amounts — if you pay at least 90 percent of your current year's tax or 100 percent of your prior year's tax (110 percent if your prior year income was over $150,000), you will not face underpayment penalties, even if you owe more when you file.

Payment Methods and Where to Send Your Money

The IRS offers several ways to send quarterly payments. IRS Direct Pay is free and lets you pay directly from your bank account through the IRS website at irs.gov. You enter your bank routing and account number, choose your payment date, and the IRS withdraws the money. The payment posts within one business day.

The Electronic Federal Tax Payment System (EFTPS) is another free option that works similarly but requires you to enroll first, which takes one to two business days. Once enrolled, you can schedule payments in advance. Many tax professionals and accountants use EFTPS because it integrates with their accounting software.

You can also pay by credit or debit card through approved payment processors, though they charge a processing fee (usually 1.5 to 2 percent of your payment). If you prefer to mail a check, use Form 1040-ES, write your Social Security number and "2024 Q2" (or whichever quarter) on the check, and mail it to the address shown in the form instructions — the address varies by state. Mailed payments take longer to process, so mail at least one week before the important date.

What Happens If You Miss a important date

Missing a quarterly payment important date can result in an underpayment penalty, which the IRS charges on top of the taxes you owe. The penalty is calculated based on how much you underpaid and for how long. Even if you pay the full amount when you file your annual return in April, you may still owe a penalty for the months you were late.

The IRS does not always charge a penalty if you miss one payment but catch up on the rest. If your income was uneven during the year and you paid more in later quarters to make up for an early shortfall, the IRS may waive the penalty under the annualized installment method. This is another reason to keep records of when you paid and how much.

If you realize you will miss a important date, paying as soon as you can after the important date is better than not paying at all. The penalty accrues daily, so a late payment is still preferable to no payment. If you have a legitimate reason for missing a important date — such as a serious illness or natural disaster — you can request penalty relief from the IRS, though you will still owe the tax itself.

Adjusting Your Payments During the Year

You do not have to pay the same amount every quarter. If your income changes significantly during the year, you can recalculate your estimated payment and adjust future quarters. For example, if you had a slow first half of the year, you can lower your third and fourth quarter payments based on your updated income estimate.

Some people pay more than required in early quarters to reduce the amount due at tax time or to build a cushion in case they owe more than expected. This is a personal choice and does not affect your penalty calculation as long as you meet the safe-harbor threshold by the end of the year.

If you overpay during the year, you can request a refund when you file your annual return, or you can ask the IRS to explore the overpayment to next year's estimated taxes. Many people choose to carry the overpayment forward to reduce their first quarterly payment of the new year.

Tracking Payments and Keeping Records

Keep a record of every quarterly payment you make, including the date, amount, and confirmation number. If you pay online through IRS Direct Pay or EFTPS, save the confirmation email or print the confirmation page. If you mail a check, keep a copy of the signed check or a photo of the front and back.

When you file your annual tax return, you will report all four quarterly payments on Form 1040. The IRS matches your reported payments against their records, so having documentation protects you if there is ever a discrepancy. If a payment is lost in the mail or not credited to your account, your records prove you sent it and when.

You can also check your payment history on the IRS website by logging into your account at irs.gov or by calling the IRS at 1-800-829-1040. The IRS will show you which payments have been received and credited to your account.

Frequently Asked Questions

What if I did not know I needed to make quarterly payments?

If you missed payments for a past year, you can still file your tax return and pay the full amount owed. You may owe an underpayment penalty, but the IRS sometimes waives it if you have a reasonable cause, such as not knowing about the requirement. Contact a tax professional to discuss your situation and file as soon as you can.

Can I pay quarterly taxes through my business bank account or do I have to use my personal account?

You can use either a business or personal bank account to pay through IRS Direct Pay or EFTPS. The account must be in your name or your business name, and you must be authorized to withdraw from it. The IRS does not care which account you use as long as the payment is made on time.

Do I have to make quarterly payments if I am incorporated or an LLC?

It depends on how your business is taxed. If you are a sole proprietor, partnership, or single-member LLC taxed as a sole proprietorship, you make quarterly payments as an individual. If you are a corporation or multi-member LLC taxed as a corporation, the business itself may make quarterly payments. Consult a tax professional about your specific business structure.

What if my income is seasonal and I only earn money part of the year?

You can use the annualized installment method to calculate unequal quarterly payments based on when you actually earned the income. Instead of dividing your annual tax by four, you calculate tax on the income earned through each quarter and pay only on the quarters when you had income. This requires more detailed calculations, so work with a tax professional or use tax software that supports this method.

Can I pay my quarterly taxes with a credit card?

Yes, but only through approved payment processors, and they charge a fee. You cannot pay directly to the IRS with a credit card. The fee is typically 1.5 to 2 percent of your payment amount, so a $5,000 payment would cost $75 to $100 in fees. Most people use bank account payments through IRS Direct Pay or EFTPS to avoid the fee.