Why Quarterly Taxes Matter

If you expect to owe $1,000 or more in federal taxes when filing your annual return, the IRS requires you to make quarterly estimated tax payments. Skipping these or underpaying often leads to unexpected penalty fees at year-end.

The 4-Step Quarterly Checklist

  1. Track Net Income (Not Gross Revenue): Calculate your total income minus allowable business expenses for the quarter.
  2. Set Aside 25%–30% of Net Profits: Transfer this percentage into a dedicated business tax savings account every time an invoice or client payment clears.
  3. Know Your Deadlines:
    Q1
    April 15
    Q2
    June 15
    Q3
    September 15
    Q4
    January 15(following year)
  4. Pay via EFTPS or IRS Direct Pay: Keep digital receipts of all quarterly confirmation numbers for your annual return reconciliation.
Pro CPA Tip

Safe harbor rules protect you from penalties if you pay at least 100% of last year's tax liability (or 110% if your Adjusted Gross Income exceeds $150,000).

This checklist covers the mechanics — for how to actually calculate the right amount for your situation, see how much you should set aside for quarterly taxes.