If you are self-employed, freelance, do travel nursing, or have your own small business, you are probably supposed to pay estimated taxes every quarter. The IRS does not wait until April. Here are the dates for 2026:
- April 15, 2026 – First quarter
- June 15, 2026 – Second quarter
- September 15, 2026 – Third quarter
- January 15, 2027 – Fourth quarter (this covers income from October through December 2026)
Miss a deadline and they tack on penalties and interest. It adds up quick.
How to Calculate What You Owe
You have to estimate your income for the year. Here is the general process:
- Add up everything you expect to make: freelance work, business income, side gigs, investments.
- Subtract your deductions. Retirement contributions, business expenses, equipment, anything legitimate.
- Use Form 1040-ES. The worksheet walks you through it.
- Pay online through IRS Direct Pay or EFTPS. Or mail a check with the form.
If your income jumps around a lot, it is easy to get the numbers wrong. Some people just pay based on what they owed last year to keep it simple.
How to Avoid the Underpayment Penalty
If you end the year and realize you did not pay enough in estimated taxes, the IRS will usually charge you a penalty. But there are two ways around it.
First way: You paid in at least 90% of your total tax bill for 2026. So if you owe $10,000, as long as you sent in at least $9,000 across the four payments, you are safe.
Second way: You paid in 100% of what you owed last year. For 2026, that means looking at your 2025 tax return. Whatever your total tax was for 2025, if you paid at least that much in 2026, no penalty.
If your adjusted gross income on your 2025 return was over $150,000 ($75,000 if you are married and file separately), that number goes up to 110%.
You only need to meet one of these. Hit either threshold and the IRS leaves you alone.
Why Bother
If you have income that is not having taxes taken out, estimated payments are not optional. Skip them and:
- You get hit with monthly penalties and interest.
- You owe a lump sum at tax time that can drain your bank account.
- You put a target on your back with the IRS.
Paying as you go just means no surprises.
What Are the Common Mistakes for Quarterly Tax Payments?
Underestimating Income
People guess low or take too many deductions upfront. Then they get a bill they cannot cover. Be conservative.
Not Adjusting Payments
Your income changes. Your payments should too. If you make more in a quarter, send more. If you make less, send less. You do not have to stick with what you paid in April.
Missing Deadlines
It happens. People forget. Put the dates on a physical calendar or set a reminder on your phone. Having a tax person who sends you a heads-up helps too.
Staying on Top of It
- Use bookkeeping software so you actually know where your income stands.
- Move a percentage of every payment into a separate account. Treat it like a business expense.
- Check in with a CPA once a quarter. A ten-minute call can catch problems early.
- Recalculate each quarter. Do not just send the same amount out of habit.
When to Get a CPA
You do not always need one. But it makes sense if:
- Your income goes up and down a lot.
- You work in multiple states.
- You have income from different types of sources.
- You have investments or stock options.
A decent CPA will keep you from messing it up and usually pays for themselves.
FAQ
Q: What happens if I miss a payment?
A: You might owe a penalty. But if you end up paying 90% of what you owe for the year, or at least what you paid last year, you can avoid it.
Q: Can I adjust my payments?
A: Yes. Just send more or less the next quarter. Nobody is locking you into a set amount.
Q: Where do I get the forms?
A: IRS website. Search for Form 1040-ES.
Q: Do I have to do this?
A: If you expect to owe $1,000 or more for the year, yes. That covers most self-employed people.
Q: How do I pay?
A: IRS Direct Pay or EFTPS online. Or mail a check with the form. Online is easier.Q: What if I overpay?
A: You can roll it into the next quarter or get it back as a refund when you file