How to Stay On Top of Your Quarterly Tax Payments (Without the Panic)
If your CPA (or the IRS) has told you that you need to pay quarterly taxes this year and your reaction was, “Wait… what?”—you’re in the right place!
This year, your CPA might send you a Form 1040-ES and some payment vouchers that look a little confusing. You’re probably wondering: “What do I do with this, and will I get in trouble if I ignore it for just one more year?” 😅
Let’s break it down together.
The Basics: Why You’re Getting These Forms
The U.S. tax system is based on a “pay as you go” approach, which means the IRS wants you to pay your taxes throughout the year—not just in April when you file your annual tax return. Fun, right? (Just kidding, we know it’s stressful!)
If you’re a W-2 employee, your employer withholds taxes from each paycheck, and you might even get a refund come spring. But if you earn 1099 income, work as a freelancer or contractor, or run your own business, taxes aren’t automatically withheld. It’s your responsibility to pay Uncle Sam as you go.
So, What Are Quarterly Taxes?
Quarterly taxes are your way of paying your tax bill gradually throughout the year. Think of it like making four payments toward your total income tax bill, similar to paying off a big purchase in installments. Except… you won’t know the final bill until the end of the year!
At that point, the IRS will let you know if you’ve overpaid (refund!) or underpaid (balance due).
💸 Are Quarterly Payments an Extra Tax?
Nope! These payments are not an extra tax. They’re just a way to spread out what you’ll owe at the end of the year—like a payment plan for your taxes.
💸 What Happens if I Skip Quarterly Payments?
If you skip out on quarterly payments, you may face penalties and interest when tax season rolls around. The IRS loves a taxpayer who pays on time!
💸 When Are 2025 Quarterly Payments Due?
Here’s a quick cheat sheet for the 2025 due dates:
Q1: April 15, 2025
Q2: June 16, 2025
Q3: September 15, 2025
Q4: January 15, 2026
Yep, these quarters are anything but “normal,” and no, we don’t know why either.
💸 How Much Should You Pay Each Quarter?
Here’s the tricky part: The amount you owe depends on your individual tax situation. We can’t give you personalized tax advice here (our lawyer doesn’t like it when we do that 😉). The best move? Talk to your CPA or a trusted tax preparer who can help you figure out the right amount to pay.
DIY-ing, or don't have a CPA yet? One of our trusted CPA partners created this quarterly estimated tax calculator just for you!
To Wrap It All Up…
Paying quarterly taxes might feel overwhelming at first, but remember: they’re simply your way of keeping up with the IRS throughout the year. Don’t let the jargon or forms stress you out—partner with a tax professional who can help you navigate the process and avoid penalties. And if you ever feel stuck, just know that you’re not alone!
