When are Q1 estimated taxes due for self-employed individuals?
Most small business owners need to make quarterly estimated tax payments that cover both income taxes and self-employment taxes. These payments are due at specific times throughout the year, with each quarter having its own due date.
In general, you need to make estimated payments if your total tax liability for the year is at least $1,000 after subtracting withholdings and refundable credits, and if your withholdings and refundable credits are less than either the taxes you paid the prior year or 90% of the taxes you owe for the current year.
For the first quarter, the due date for most self-employed taxpayers is April 15, the same as the individual income tax filing deadline. However, businesses with fiscal years that do not begin on January 1 are subject to different rules for determining quarterly payment deadlines.
How do I calculate my estimated quarterly taxes?
If you work with a tax professional or use accounting software, you can determine your quarterly estimated tax payments based on your actual earnings.
You can also estimate your total taxable income, taking into account deductions and credits, and multiply your adjusted gross income (AGI) by your applicable tax rate based on your tax bracket.
If you earn more than $400 in self-employment income, you must also pay self-employment tax, which includes both the employer and employee portions of Social Security and Medicare taxes.
To calculate this amount:
- Multiply your estimated total self-employment income by 92.35%, and then
- Multiply that result by 15.3% (the combined Social Security and Medicare tax rate).
IRS Form 1040-ES provides a worksheet to help you calculate your total estimated tax liability.
Once you have your estimated annual total, add your income tax and self-employment tax obligations together and divide by four to determine your quarterly payment amount.
How do I pay my quarterly taxes?
You can pay Q1 estimated taxes online or by mail. The easiest options include:
- IRS Direct Pay - Pay directly from your checking or savings account.
- Electronic Federal Tax Payment System (EFTPS) - Ideal for recurring or scheduled payments.
- Credit or debit card payments – Available through IRS-approved processors (may include a small fee).
- Mail – Send a check or money order along with your Form 1040-ES payment voucher.
If your state imposes income taxes, you may also be required to make quarterly estimated payments to your state tax agency.
What happens if I haven't been paying my quarterly taxes?
If you haven’t made estimated tax payments, you may not owe a penalty if your withholdings from other income sources—such as wages or retirement distributions—cover at least 90% of your current year’s total tax liability or the same amount you paid in federal taxes the prior year.
However, if you do not meet either threshold, the IRS may assess penalties and interest starting from the date each quarterly payment was due. The IRS calculates penalties separately for each missed or underpaid installment.
How do I stay on top of my estimated taxes?
Setting reminders for your estimated tax payments can help ensure you never miss a deadline. Consider using a digital calendar or tax software that allows you to schedule recurring events and reminders for each due date.
It’s a good idea to set those reminders at least one week before each due date to give yourself time to prepare and submit your payment.
Typically, estimated tax payments are due on the 15th of April, June, September, and January. If a due date falls on a weekend or federal holiday, the deadline is automatically extended to the next business day.
In some cases, the IRS grants extensions or relief for taxpayers affected by natural disasters or severe weather events in certain regions.
Need help understanding your estimated tax obligations?
If you’re unsure whether you must make estimated tax payments—or want guidance tailored to your specific situation—reach out to a Rocket Legal Pro for fast and affordable legal and tax advice.
Please note: This page offers general legal information, not but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.
