estimated-taxes
Estimated Tax Payments
Calculate and schedule quarterly estimated tax payments to avoid underpayment penalties. Essential for self-employed individuals, freelancers, and small business owners who don't have taxes withheld from a paycheck.
Why you need to pay quarterly
Employees have taxes withheld every paycheck. Self-employed people don't. The IRS expects to receive tax payments throughout the year, not one lump sum in April. If you wait until filing to pay everything, you'll owe an underpayment penalty.
You must make estimated payments if you expect to owe $1,000 or more in tax for the year after subtracting withholding and credits.
You're exempt if: You had zero tax liability last year (100% of prior-year tax is $0), or your withholding from other sources (W-2 job, pension, etc.) covers your expected tax.