Quarterly Tax Payment Calculator

 

Who needs to pay estimated taxes?

If you know that you will owe more than $1,000 to the IRS, you will want to make quarterly tax payments. Each state varies on their requirement for when you need to start paying in quarterly, so just look up your state’s department of revenue website and see what they require.

What happens if I don’t pay quarterly taxes?

If you don’t pay into quarterly taxes (and you are supposed to), you could end up owing the IRS an underpayment penalty in addition to the taxes that you owe. The penalty depends on how much you owe and the amount of time that you owed it to the IRS.

What are the due dates?

– Quarter 1 payment (January 1 to March 31) – April 17
– Quarter 2 payment (April 1 to May 31) – June 15
– Quarter 3 payment (June 1 to August 31) – September 17
– Quarter 4 payment (September 1 to December 31) – January 15

Heads up:  Be sure to check your state’s website for their due dates! They are not always the same as the federal due dates.

How to make quarterly tax payments?

Complete the Form 1040-ES (Estimated Tax for Individuals) and mail it to the IRS with a check.  You also have an option to pay online via the IRS payment portal.

How do I calculate quarterly tax payments?

DIY Option – I have prepared a free estimated quarterly tax worksheet which will guide you through the process of calculating your quarterly tax payments.  You can download the printable worksheet below.

The percentages used in the worksheet are estimations. If you know that you usually fall into a higher tax bracket, you’re welcome to increase the percentages.

Please note, the state section is only for those states who have income tax. Those of you who live in states like Florida and Texas won’t need to fill this part out.

Once you’ve calculated the amount you owe for the quarter, it’s time to make the payment. I’ve linked to the federal payment page below and most states have a similar process for paying online. Try Googling “your state + online estimated tax payment” to pay directly to your state.

Keep in mind, you aren’t actually filing any information at this time. You’re simply making a deposit towards your year-end balance. If you skip a payment, it’s not the end of the world. Try to catch up the next quarter or plan to pay the balance at tax time.

Do I pay less with the new tax law?

If you’ve used my worksheet before you’ll notice that the calculations have not changed for the 2018 tax year. I’ve ran the numbers with the new tax law (and tax brackets) and the amounts vary widely depending on your income. Until a standardized guide is provided by the IRS I recommend utilizing the figures provided in the worksheet. I will continue to tweak this worksheet throughout the year and will provide you with updates on any changes before the next quarterly tax payment is due.

Tax Professional Option – The amount you owe will depend on several things like tax deductions, tax credits, marriage status, number of dependents and several other variables. If you want a precise calculation, contact me.

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Amy Northard, CPA

The Accountant for Creatives
+ taxes + bookkeeping + consulting
+ Hang out with me over on Instagram!

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