Quarterly Estimated Taxes

Personal Finance

Quarterly estimated taxes are prepayments to the IRS made by self-employed individuals, freelancers, retirees, and anyone with significant non-wage income — replacing the withholding W-2 employees have automated. Due dates: April 15, June 15, September 15, January 15 of the following year. Pay either 100% of prior year's tax (110% if AGI exceeded $150K) or 90% of current year's expected tax, whichever is smaller, to avoid underpayment penalties. Most calculate quarterly using Form 1040-ES worksheets. Underpaying by more than $1,000 triggers IRS interest charges — small but annoying. Set up automatic payments via EFTPS.gov to never miss a due date.