If you’re used to paying taxes just once a year in April, the idea of making four separate tax payments annually might sound like a mistake—or a punishment. But for millions of Americans, especially freelancers, self-employed professionals, and investors, federal quarterly tax payments are a regular part of financial life.
Missing them can trigger stress, penalties, interest, and even a surprise tax bill when you least expect it.
At Harness, we believe in giving you clarity, not confusion. No matter if you’re a gig worker earning 1099 income, running a side hustle, or earning investment returns outside of W-2 wages, this guide will walk you through the essentials of quarterly tax payments: who owes them, how to calculate them, and how to stay on top of deadlines—so you can plan confidently and avoid costly surprises.
Table of Contents
- What are federal quarterly tax payments?
- Who needs to pay estimated taxes?
- How to calculate your quarterly payments
- Key deadlines to know
- What happens if you don’t pay?
- How to make your payments
- Take control of your tax calendar
What are federal quarterly tax payments?
Federal quarterly tax payments—also known as estimated tax payments—are advance payments of your income taxes, typically made four times throughout the year. Instead of waiting until April to settle up with the IRS, taxpayers who don’t have enough taxes automatically withheld from their income are required to pay in advance as they earn.
This system helps the IRS collect taxes year-round and applies to individuals who earn income that isn’t subject to regular paycheck withholding—think freelance income, side gigs, rental income, dividends, or stock sales.
These payments are meant to cover your federal income tax, as well as self-employment tax and, in some cases, alternative minimum tax. You can make your payments by mail, but most people prefer electronic options through IRS Direct Pay or the Electronic Federal Tax Payment System (EFTPS).
TL;DR: If you’re earning untaxed income, there’s a good chance the IRS expects you to pay taxes throughout the year, not just once.
Who needs to pay estimated taxes?
Before you mark your calendar or break out a calculator, it’s important to know whether quarterly payments even apply to you.
In general, the IRS requires individuals to make federal quarterly tax payments if both of the following are true:
- You expect to owe at least $1,000 in federal income tax for the year after subtracting your withholding and tax credits.
- You expect your withholding and credits to cover less than 90% of your current-year tax (or 100% of last year’s tax, whichever is smaller—more on that in the next section).
This applies most often to people who earn income outside of a traditional W-2 paycheck, including:
Freelancers, gig workers, and contractors
You don’t have an employer withholding taxes, so you’re responsible for paying as you go.
Small business owners and sole proprietors
If you run a consulting practice or an Etsy shop, net income is taxable—and subject to self-employment tax.
People with side hustles
If you’ve picked up extra work through DoorDash, Airbnb, or Upwork, the IRS wants a piece of that income, too.
Investors with capital gains, dividends, or rental income
These earnings are taxable and often overlooked in annual planning.
Even if you’re employed and receive a W-2, you might still owe estimated taxes if you have significant untaxed income on the side.
If that sounds like you, it’s a good time to assess your income and get ahead of any surprises.
Curious how this plays out for freelancers specifically? Check out our guide on Tax Planning for Freelancers,
How to calculate your quarterly payments
Estimating your quarterly taxes isn’t about guessing, it’s about planning. The IRS gives you tools to help you get it right, but your accuracy depends on how well you understand your income, deductions, and credits.
To get started, most taxpayers use IRS Form 1040-ES, which includes a worksheet for calculating your total expected income and tax liability for the year. You then divide your estimated annual tax into four payments.
There are two common methods to calculate your estimated taxes:
Safe Harbor Method
If you want to avoid penalties, the IRS allows you to pay the lesser of:
- 90% of your tax liability for the current year, or
- 100% of your tax liability from the previous year (or 110% if your income exceeds $150,000)
Annualized Income Method
If your income fluctuates throughout the year—for example, if you earn more during certain seasons—you may want to use this method. It allows you to match payments more closely to when income is actually earned.
Tools that make tax estimates easier
You can do these calculations manually, or use tax software. But for complex scenarios—especially if you’re self-employed or dealing with capital gains—it often makes sense to work with a qualified tax advisor.
Thinking about doing it yourself? Here’s a helpful breakdown of your options: Pros and Cons of Using Tax Preparation Software. But if you’d rather not go it alone, working with a Harness tax advisor means you’ll get personalized support, accurate estimates, and peace of mind—tailored to your income, goals, and career stage. Explore Harness services to see how we can help.
Key deadlines to know
Knowing when to pay is just as important as knowing how much to pay. The IRS expects your federal quarterly tax payments on a set schedule, and missing even one deadline can trigger a penalty—regardless of how accurate your total annual payment ends up being.
Here are the due dates for each quarter:
| Tax Period | Payment Due Date |
| January 1 – March 31 | April 15 |
| April 1 – May 31 | June 15 |
| June 1 – August 31 | September 15 |
| September 1 – December 31 | January 15 (of the following year) |
If the due date falls on a weekend or holiday, the deadline shifts to the next business day.
Keep in mind: even if you file your tax return early or know you’ll get a refund, you’re still expected to make timely estimated payments throughout the year if you meet the income thresholds. The IRS doesn’t wait—and neither should you.
Want to make sure your payment calendar is set up right? Advisors at Harness can help you plan your payments around your income flow, so you’re not stuck with a big bill and short notice.
What happens if you don’t pay?
Missing a quarterly tax payment might not seem like a big deal—but the IRS sees it differently. If you’re required to make federal quarterly tax payments and you don’t, you could face penalties, interest, or both—even if you end up paying your total tax bill by April 15.
The consequences of missing or underpaying
Here’s what can happen if you’re caught missing or underpaying on your tax submission.
Underpayment penalty
If you didn’t pay enough during the year through estimated payments or withholding, the IRS may charge a penalty based on how much you underpaid and for how long the amount was outstanding.
Interest charges
The IRS also tacks on interest to unpaid taxes, which accrues daily—so the longer you wait, the more you owe.
State-level penalties
Don’t forget: some states have their own estimated tax requirements, and missing those can double your penalty risk.
Even if you end up owing less than $1,000 at the end of the year, underpayment during the year can still trigger fees. The safest strategy is to pay as you go—and pay close attention to income fluctuations that could push you over the threshold.
How to make your payments
Once you know your numbers and deadlines, the next step is making your federal quarterly tax payments—and the good news is, the IRS offers multiple ways to pay.
Your payment options
IRS Direct Pay
This is the fastest, most straightforward method for individuals to pay directly from a bank account—no registration required. Pay via IRS Direct Pay
EFTPS (Electronic Federal Tax Payment System)
A free service from the U.S. Department of the Treasury. It requires registration, but gives you more control over scheduling and tracking payments. Enroll in EFTPS
Check or money order
If you prefer mailing in payments, you can do so using a payment voucher from IRS Form 1040-ES. Just be sure to mail it early enough to arrive by the deadline.
Tax software or advisor support
Some tax softwares can automate estimated payments, while working with a tax advisor (like one from Harness) ensures your payments are accurate, timely, and tax-smart.
Avoiding common mistakes
- Always include the correct tax year and payment period when making a payment.
- Keep proof of payment (confirmation emails, EFTPS records, etc.) for your files.
- Double-check that your Social Security number or taxpayer ID is entered correctly.
If this all sounds overwhelming, don’t worry. Harness combines expert advisors with purpose-built tax software to simplify everything from calculating estimates to submitting on-time payments. If you’re managing multiple income streams or just starting out with freelance work, our platform gives you clarity, confidence, and control over your quarterly tax obligations.
Take control of your tax calendar
Paying taxes four times a year might feel like one more stressor in an already busy life—but it doesn’t have to be. With the right tools, planning, and expert support, federal quarterly tax payments can become a natural, manageable part of your financial rhythm.
Regardless if you’re freelancing full-time, running a small business, or investing on the side, making estimated payments is all about staying in control of your money and planning ahead with confidence.
At Harness, we make that easier. Our platform brings together vetted tax advisors, powerful tools, and a personalized approach to help you stay on top of your quarterly obligations—and ahead of your long-term goals.
Ready to simplify your tax life? Get started with Harness and gain clarity and expert support every step of the way.
Disclaimer:
Tax related products and services provided through Harness Tax LLC. Harness Tax LLC is affiliated with Harness Wealth Advisers LLC, collectively referred to as “Harness Wealth”. Harness Wealth Advisers LLC is a paid promoter, internet registered investment adviser. Registration does not imply a certain level of skill or training. This article should not be considered tax or legal advice and is provided for informational purposes only. Please consult a tax and/or legal professional for advice specific to your individual circumstances. This article is a product of Harness Tax LLC.
Content was prepared by a third-party provider and not the adviser. Content should not be regarded as a complete analysis of the subjects discussed. Although we believe the content is reliable, it is not guaranteed as to accuracy and does not purport to be complete nor is it intended to be the primary basis for financial or tax decisions.