Did you pay your quarterly tax payment?

Quarterly Estimated Tax Payments: A Guide for Self-Employed Professionals

How to calculate, schedule, and pay your federal estimated taxes online while avoiding unnecessary IRS penalties.

When you work for an employer, taxes are typically withheld from your paycheck automatically. But when you’re self-employed, managing your tax obligations becomes your responsibility.

Whether you’re a therapist running a private practice, an independent consultant, or another business owner, understanding quarterly estimated tax payments is an important part of managing your finances.

The good news? Paying estimated taxes doesn’t have to be complicated. With a little planning and the right tools, you can stay organized, avoid unnecessary penalties, and reduce the stress of tax season.

In this guide, we’ll cover when estimated tax payments are required, how much you may need to pay, and how to make payments online.

What Are Quarterly Estimated Tax Payments?

The United States operates under a pay-as-you-go income tax system. This means you’re generally expected to pay taxes throughout the year as you earn income, rather than waiting until you file your annual tax return.

For traditional W-2 employees, employers withhold federal income taxes from each paycheck based on information provided on Form W-4.

For self-employed individuals, however, taxes generally aren’t automatically withheld from business profits. As a result, you may need to make estimated tax payments directly to the IRS.

These payments can cover several tax obligations, including:

• Federal income tax: Taxes owed on your taxable income.
• Self-employment tax: Social Security and Medicare taxes generally applicable to net earnings from self-employment.
• Other applicable federal taxes: Such as alternative minimum tax, when relevant.

Your estimated tax obligation is generally based on projected taxable income, applicable taxes, deductions, credits, and withholding—not simply the revenue your business generates.

For sole proprietors, these payments are generally made toward the individual’s personal federal income tax return, using Form 1040-ES.

Who Needs to Make Estimated Tax Payments?

According to the IRS, individuals generally need to make estimated tax payments if they meet both of these conditions:

1. They expect to owe at least $1,000 in federal taxes for the year after subtracting withholding and refundable tax credits.
2. Their expected withholding and refundable credits will be less than the applicable amount required under the IRS estimated tax safe-harbor rules.

People who may need to make estimated payments include sole proprietors, independent contractors, partners in partnerships, S corporation shareholders, and individuals receiving substantial investment or other income without sufficient withholding.

Important: Being self-employed doesn’t automatically mean you must make quarterly payments. For example, if you or your spouse has enough federal income tax withheld from W-2 wages, that withholding may satisfy your estimated tax obligations.

Individuals who had no federal income tax liability in the previous full tax year may also qualify for an exception, provided they meet the IRS requirements.

When Are Quarterly Estimated Tax Payments Due?

Although estimated payments are commonly called quarterly taxes, the payment periods aren’t divided into four equal three-month periods.

The IRS establishes the following schedule for calendar-year individuals:

If a regular due date falls on a weekend or federal legal holiday, the deadline generally moves to the next business day. Special exceptions and disaster-related postponements may also apply.

Planning Tip: Rather than waiting until a payment deadline approaches, consider setting aside money for taxes whenever business income is received. Keeping these funds in a separate savings account can help you avoid accidentally spending money that will eventually be owed to the IRS.

How Much Should You Pay Each Quarter?

You don’t have to predict your tax obligation perfectly, but you should develop a reasonable estimate of what you’ll owe.

A useful starting point is reviewing your previous year’s tax return and comparing it with your projected income for the current year.

The IRS provides two commonly used safe-harbor approaches that can help individuals avoid estimated tax underpayment penalties.

Option 1: Pay 90% of Your Current Year’s Tax

You generally can avoid an underpayment penalty by making timely tax payments, including withholding, totaling at least 90% of your current year’s tax liability.

This approach may be useful when you expect to earn significantly less than you did in the prior year.

Option 2: Pay 100% or 110% of Your Previous Year’s Tax

Another approach is to base your payments on your prior-year tax liability.

Generally, the required amount is:

• 100% of your prior-year tax liability if your prior-year adjusted gross income (AGI) was $150,000 or less.
• 110% of your prior-year tax liability if your prior-year AGI exceeded $150,000.

For taxpayers whose current-year filing status is married filing separately, the AGI threshold is $75,000 rather than $150,000.

These prior-year safe-harbor rules generally require that your previous tax return covered a full 12-month tax year.

Example:

Imagine you own a private practice, and your 2025 federal income tax liability was $20,000. Your 2025 adjusted gross income was $180,000.

Because your previous year’s AGI exceeded $150,000, the prior-year safe-harbor amount for 2026 would generally be:

$20,000 × 110% = $22,000

If you expect to have $6,000 withheld from wages during 2026, your remaining amount under this approach would be:

$22,000 − $6,000 = $16,000

Assuming the regular equal-installment method applies, you could generally satisfy this amount with four timely estimated tax payments of $4,000 each.

This is an illustration, not a personalized tax calculation. Your actual required payments may be lower under the 90% current-year rule or different because of other tax circumstances.

Remember: Meeting a safe-harbor requirement generally protects you from an estimated tax underpayment penalty. It doesn’t necessarily mean you’ve paid your entire tax bill. You could still owe additional taxes when filing your annual return.

What Happens If You Don’t Pay Enough?

Failing to make sufficient estimated tax payments on time may result in an IRS underpayment penalty.

An important distinction is that you can sometimes owe an underpayment penalty even if you receive a tax refund when you file your return. This happens because the IRS evaluates whether enough tax was paid by the applicable installment deadlines.

Generally, many taxpayers can avoid the penalty if they owe less than $1,000 after withholding and refundable credits, or if they satisfy one of the applicable safe-harbor requirements through timely payments.

What if your income changes throughout the year?

For business owners whose earnings fluctuate significantly, equal quarterly payments may not be the most appropriate approach. The IRS allows qualifying taxpayers to use the annualized income installment method, which considers when income was earned.

This can be particularly helpful for seasonal businesses, practice owners experiencing substantial growth, or individuals receiving a large capital gain later in the year.

The calculation can be more complicated, so consider working with a CPA or enrolled agent to determine whether this approach makes sense for you.

How to Make Federal Estimated Tax Payments Online

The IRS offers two convenient ways for individuals to make federal estimated tax payments electronically.

I recommend starting with the IRS Individual Online Account because it provides convenient payment management and access to your tax records.

You can also use IRS Direct Pay if you’d prefer not to create an online account.

Option 1: IRS Individual Online Account (Recommended)

The Individual Online Account allows you to make payments, schedule future payments, and review your IRS payment history.

You can also view up to five years of payment history, including estimated tax payments.

Step 1: Gather Your Information

Before creating your account, have the following available:

• Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN).
• Personal email address.
• Government-issued photo identification, such as a driver’s license or passport.
• A method for multifactor authentication, such as a mobile phone or authentication app.
• Bank routing and account numbers for making payments.

Step 2: Create or Access Your IRS Account

Visit the official IRS website:

IRS Individual Online Account

Select “Sign in or create account.”

If you don’t already have an account, follow the instructions to create an ID.me account and verify your identity.

ID.me is the identity verification service used to access IRS online accounts.

Once verification is completed, you can securely access your tax information.

Step 3: Make Your Estimated Tax Payment

After signing in:

1. Select the option to make a payment.
2. Choose the estimated tax payment option.
3. Select the appropriate tax year.
4. Enter your payment amount.
5. Provide your bank payment information.
6. Select the payment date.

Be particularly careful when selecting the tax year.

For example, a payment made in January 2027 for the fourth installment of your 2026 estimated taxes should be designated for the 2026 tax year.

Payments applied to the wrong year may require additional steps to correct.

Step 4: Review and Confirm Your Payment

Before submitting, review the payment details, including the payment amount, tax year, bank information, and payment date.

After submitting your payment, save the confirmation information and verify that the payment was successfully processed.

You can return to your IRS account to review payment activity and scheduled payments.

One major benefit of using the online account is being able to monitor what you’ve already paid throughout the year.

However, keep in mind that the account does not automatically calculate your final tax obligation for a tax year that hasn’t been filed. You’ll still need to estimate your tax liability separately.

Option 2: IRS Direct Pay (No Account Required)

If you don’t want to create an IRS Online Account, IRS Direct Pay is another free option.

Visit:

IRS Direct Pay

To make a payment:

1. Select the option to pay your individual taxes.
2. Choose “Estimated Tax” as the reason for payment.
3. Apply the payment to Form 1040-ES and the correct tax year.
4. Complete the required identity verification.
5. Enter your bank account and payment details.
6. Review and submit your payment.
7. Save your confirmation number.

Direct Pay does not require registration, although it generally uses information from a previously filed tax return to verify your identity.

If you’re married filing jointly, follow the IRS instructions carefully to ensure that the payment is credited correctly.

You can also schedule payments in advance using Direct Pay.

Three Tax Planning Tips for Self-Employed Professionals

Making the payment is only one part of managing your tax obligations. Here are three additional habits worth developing.

1. Keep your business and personal finances separate.

Maintain a dedicated business bank account and consider using a separate savings account for taxes. This makes it easier to monitor profitability and avoid spending funds intended for future tax payments.

2. Review your estimated taxes throughout the year.

If your business grows, your profits decline, or your household income changes, revisit your estimated tax calculations.

Don’t assume that the payment amount established in January will remain appropriate for the entire year.

3. Coordinate your tax planning with your retirement and financial planning strategies.

Eligible retirement contributions, business deductions, tax credits, and other planning decisions can influence your overall tax liability.

For business owners, the goal should be more than simply making quarterly payments. It’s developing a financial system that helps you understand how much money is available for taxes, business operations, personal spending, and long-term wealth building.

Don’t Forget About State Estimated Taxes

Federal estimated taxes are only one part of your obligation.

Depending on where you live and operate your business, you may also need to make estimated payments to your state.

For example, Georgia taxpayers can make applicable state estimated tax payments through the Georgia Tax Center.

State estimated taxes have their own rules and requirements. Making a payment to the IRS does not satisfy a separate state tax obligation.

Final Thoughts: Make Tax Planning Part of Your Financial System

One of the challenges of self-employment is that your income can grow faster than the financial systems you have in place to manage it.

Making quarterly estimated tax payments is a relatively simple process once you understand the rules and establish a routine.

The key is to calculate a reasonable payment amount, maintain adequate cash reserves, and review your taxes as your income changes throughout the year.

For assistance calculating estimated taxes, evaluating your tax return, or meeting your filing obligations, consult a qualified tax professional, such as a CPA or enrolled agent.

Turn Your Business Income Into Long-Term Wealth

At Deasil Wealth Management, we help self-employed professionals and private practice owners make informed financial decisions, organize their cash flow, and develop strategies for building wealth beyond their businesses.

Tax planning is an important part of the broader financial picture, but it should work alongside your retirement, investment, and personal financial goals.

Schedule a complimentary 15-minute consultation to discuss how a coordinated financial strategy can help you make the most of the income you’re working hard to earn.

Additional IRS Resources

• IRS — Estimated Taxes
• IRS — 2026 Form 1040-ES
• IRS — Publication 505: Tax Withholding and Estimated Tax
• IRS — Individual Online Account
• IRS — Direct Pay Help

Disclaimer: This article is provided for general educational purposes and does not constitute individualized tax or legal advice. Tax laws, payment systems, and deadlines can change. Consult your qualified tax professional regarding your specific circumstances.

Last reviewed: October 2026.