What is quarterly estimated tax payments

However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money. Depending on the sort of work you do or how you're paid, you might need to settle your tax bill via estimated quarterly taxes. People who aren't having enough withheld. The IRS says you need to pay estimated quarterly taxes if you expect:. The self-employed. Independent contractors, freelancers and people with side gigs are prime candidates for estimated quarterly taxes, says Bess Kane, a CPA in San Mateo, California.

Landlords and investors maybe. People with rental income and investments might need to pay estimated quarterly taxes, too — even if their employers withhold taxes from their paychecks. For , here's when estimated quarterly tax payments are due:. If you earned income during this period. You can use TurboTax tax preparation software to do the calculations for you, or get a copy of the worksheet accompanying Form ES and work your way through it. Either way, you'll need some items so you can plan what your estimated tax payments should be:.

One easy way to get a jump on paying your next year's taxes is to apply your previous year's tax refund to your next year's taxes. If you won't have federal income tax withheld from wages, or if you have other income and your withholding will not be enough to cover your tax bill, you probably need to make quarterly estimated tax payments.

Having all or part of your overpayment applied to your estimated taxes is a relatively painless way to take care of at least some of what you owe for coming year. You could end up owing the IRS an underpayment penalty in addition to the taxes that you owe.

The penalty will depend on how much you owe and how long you have owed it to the IRS. Usually, you pay your estimated tax payments in four equal installments.

But you might end up with unequal payments in some circumstances:. However, you may still owe an underpayment penalty for the first quarter. You have special criteria to meet, but you may end up paying less in estimated taxes. You're considered a qualified farmer or fisherman if you earn more than two thirds of your taxable gross income from farming or commercial fishing.

If you're not sure you qualify, or how this all works, TurboTax can help you figure your taxable gross income and what fishing and farming income you can include as qualified income. TurboTax Self-Employed uncovers industry-specific deductions. Some you may not even be aware of. Find more tax deductions so you can keep more of the money you earn with TurboTax Self-Employed. Tax credits help families and their communities thrive.

Sign up to help spread the word about these important tax credits and free tax filing. We send occasional emails with resources to help your work.

A project of the Center on Budget and Policy Priorities, the Campaign partners with community organizations, businesses, government agencies, and financial institutions to conduct outreach nationally. How to Pay There are several easy ways to make your payments. Phone You can choose one of the IRS-recognized service providers to make payments by phone with a credit or debit card. Mail If you prefer making a physical payment, you can mail a check or money order for your estimated payments.

Preparing for payments Remembering to pay your estimated payments can be tricky. Trusted Pros. Free Tools. What all does that mean? Read on to find out. What Exactly Are Quarterly Taxes? Here are the two kinds of taxes to know about: Self-employment tax: This tax is generally Who Pays Quarterly Taxes? When Are Quarterly Taxes Due? Step 1: Estimate your taxable income this year.

There are several ways you can go about paying your quarterly taxes: Pay online. This is the 21st century, after all, so now you can pay your taxes through the IRS2Go app right on your phone or tablet.