You don't need to make an estimated tax payment🍹
Here's a quick breakdown of what you need to know about making your quarterly tax payments.
This calculator estimates your federal and state-level income tax, and then divides by four.
It uses the latest federal and state level tax brackets and standard deductions. If you tell us you have a W-2 job, the calculator assumes standard withholding allowances and subtracts your expected end-of-year refund from the end-of-year tax liability.
To simplify the experience, please note:
Once you’ve used our estimated tax calculator to figure out how much you owe, making the payment is fairly straightforward and takes less than 15 minutes. You’ll need to make the payments four times per year, according to these due dates:
Here's a quick rundown on paying your estimated taxes. For a more detailed walkthrough, check out our guide on how to file quarterly taxes.
The easiest way to make a federal quarterly tax payment is to use IRS Direct Pay.
Before you get started, make sure you have these details on-hand:
On the first screen, select “Estimated Tax” as the reason for payment, “1040ES” as the Apply field, and the year you are making the payment for. Do this even if you have a single-member LLC set up - only corporate taxes need to be filed through the IRS Electronic Federal Tax Payment System (EFTPS), and this is a bit harder to set up.
From here, the instructions on the IRS website are fairly self-explanatory. You’ll need to input your personal details, the payment amount, and input a payment method.
After making the payment, you can see the status by clicking on “Look up Payment” on the IRS Direct Pay website.
If your state collects income taxes, you’ll need to also make a state estimated tax payment. Every state has different requirements for this, but it’s usually also quite painless. You’ll find state-specific instructions are generally easy to find on your State’s revenue department website.
The due dates for making state payments are the same as the federal ones, and the information required is also generally identical.
Most states offer two options for making the payment: an online portal, and mailing a check. Some states have great websites, but if you’re not so lucky you can always just mail a check.
If you wait until the end of the year to file taxes, you’ll have to pay a penalty. That penalty starts at 0.5% of your total tax owed and increases every month you don't pay, up to a limit of 25%.