What is Estimated Quarterly Tax?
US self-employed people, freelancers and partners must pay estimated federal income tax (and self-employment tax) quarterly via Form 1040-ES. Due dates: 15 April, 15 June, 15 September, and 15 January of the following year.
Current Rate (Quarterly through the calendar year)
Pay 25% of expected annual tax each quarter
Example
A freelancer expecting $20,000 federal income tax + $12,000 SE tax = $32,000 total pays $8,000 each quarter via IRS Direct Pay or EFTPS. Underpayment triggers Form 2210 penalty.
How Estimated Quarterly Tax works in United States
Safe-harbor rules: avoid underpayment penalty if you pay either 90% of current year tax OR 100% of prior year tax (110% if prior AGI was >$150,000), evenly across the four quarters.
The 'quarters' are not calendar quarters — they're roughly 3, 2, 3, 4 months long. Q1 covers 1 January – 31 March (due 15 April), Q2 covers April–May (due 15 June), Q3 covers June–August (due 15 September), Q4 covers September–December (due 15 January next year).
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