For all the freelancers, small business owners and self-employed individuals out there, staying on top of when the estimated tax payments are due is important to help you stay within the IRS tax payment guideline and avoid penalty. Making estimated tax payments also helps you avoid financial shortfall when you file your tax returns.
Here’s the full schedule for 2013 tax year.
| Quarter | Period | 2013 Due Dates | 2014 Due Dates |
|---|---|---|---|
| Q1 | January 1 – March 31 | April 15, 2013 | TBD |
| Q2 | April 1 – May 31 | June 17, 2013 | TBD |
| Q3 | June 1 – August 31 | September 16, 2013 | TBD |
| Q4 | September 1 – December 31 | January 15, 2014 | TBD |
Remember you have to pay both the IRS and your State (unless you’re living in one of the states that does not collect income tax). Hopefully, you have been saving up for this and have money in your savings to cover the tax payments.
For Federal payment:
For your state, follow the steps above using the tax rate and form for your state.
June the correct date. Q2 payment is due faster than the rest and you only have to pay taxes against 2 months’ worth of earnings (April and May). Subsequently, this means Q3 payment occurs in September and Q4 payment encompasses 4 months of income instead of three.
You can lower your tax liabilities by participating in a retirement plan designed for self-employed individuals and business owners.
No, you have to calculate the amount for both the Federal and States taxes. For Federal, you have to complete Form 1040-ES and send it along with your payment. For State, you have to search online for the appropriate form, complete it and send it in with your payment.
Alternatively, you can submit your Federal payment electronically via EFTPS; and most States should have the online equivalent.
For Federal payment, the answer depends on where you live. Check the instruction included in Form 1040-ES for the correct mailing address. Similarly, check with your State tax department for the correct mailing address for your State payment.
The deadline is the postmarked date.
Yes, the amounts can be different for each quarter depending on your earnings.
Quick links to IRS 2013 Form 1040-ES and P505: Tax Withholding and Estimated Tax.
Do quarterly tax payments have to be received by June 15 or just post marked by then ??
@ Beverly – that’s a good question. The deadline is the postmarked date.
If you miss postmarked date by two days and mailed it June 17, what will happen?
@Kathy, you should send in payment as soon as possible. The penalty is just the interest on the amount that you underpaid. The IRS will send you a bill if they feel it is warranted. Depending on your situation, e.g., if you’re still under the safe harbor, you may not owe anything at all.
Thank you, Pinyo. The payments were mailed on Friday and should have been received by today. Fingers crossed. Thank you again.
Hi there,
Great site, very informative.
In a nutshell – first time being self-employed, didn’t work Q1, realized I’m way late to file Q2, absolutely no idea how much more I will earn this year, if I pay what I owe YTD now (it’s more than my total taxes for last year) will I be OK? What kind of penalty am I looking at otherwise?
Thanks!
@Jennifer – Thank you. Based on this article – http://www.moolanomy.com/4741/.....es-ttolar/ – you’ll be charged a prorated amount based on the number of days late; so it’s better to tray and pay what you owe for Q1 and Q2 now to minimize the penalty. You’ll also need Form 2210 in addition to the 1040ES.
Also, don’t forget to pay your local taxes.
Which form do you use on the Federal EFTPS site for filing quarterly taxes?
Also, I do business in SC but none of my clients live here (online business) so how do I figure out the sales tax that I owe to my state? (I just moved to this state 2 months ago).
@Laura – I believe there is no form to file if you do it through EFTPS. All you have to do is pick the right tax form and follow the steps online.
Unfortunately, I have no expertise with sales tax in SC, so you’d have to consult a local tax advisor for that.
I only made $174.25 last month and this month about to make about $300 so far,do I have to pay estimated taxes this month september? Also i’m really having trouble figuring out how to calculate this stuff, I don’t have any previous years to go off(was unemployeed various years). I’m guessing total taxes shouldn’t exceed 30% right?
@Josh – If you have a regular job, you can also withhold more taxes for the paychecks until the end of the year and not having to worry about the sel-employment income. They are low enough that this trick should work.
Thanks for the answer, unfortunately the only income i’m making is from self employment, so at at $474 in two months I have to pay est taxes this month no? Also is 30% the top for fed+state taxes or is this a misconception on my part?
@Josh — that’s not very much and I don’t think you’ll owe that much taxes on that. You can use this estimate tool to see how much you owe for the year: http://www.hrblock.com/free-ta.....index.html. If it’s more than $500 owed, then I would send in a payment.
As for the tax bracket, the highest is 35% for Federal ( see: http://www.moolanomy.com/2581/.....-brackets/ ) and the local taxes will depend on your state and locality (so I don’t have an answer for you).
If I pay more than I am supposed to for quarterly taxes to the IRS and the state during the year, will I receive a refund back from the IRS and State just like a full time employ would?
@Joseph – Yes, when you file your tax return, you will get your money back if you overpaid.
Hello! Does the IRS send a year end statement summarizing my payments? Thanks!
@Shawna – Not that I know of. I just keep a record in my tax folder.
Hi, I’m confused about the Q2 Payment. When I filed my taxes for 2011, I had my Q1 and Q2 payment forms prepared. I questioned the forms because the payment amounts were the same. The person who prepared them told me that I had to pay the same for each quarter, regardless of the shorter period. Is this correct? I reserve quite a bit for taxes, but I would essentially being paying 3/4′s of a month’s salary just to pay that amount on time.
I made a payment to the IRS and calculated all my taxes within on sum. I was new to this and failed to realize that state and federal are separate. I made a check out to the IRS and did not pay the state. What should I do? How do I fix this?
Do the estimated taxes paid Jan 15, 2013 count towards my taxes paid for 2012?
@Ashley – The amounts do not have to be the same each quarter.
@Le’Rae – Pay the State for what you owe before Jan 15, 2013 and you’ll be fine.
@Charles – Yes, Jan 15, 2013 payment counts toward 2012. In fact, it’s a good opportunity to make sure you catch up if you happen to underpaid in prior quarters.
My husband did all the paperwork for a LLC in 2012. He got all of his business licenses but hasn’t really started yet. His 2012 income is $0 – does he still need to file taxes for the business?
@April – the best answer I found was here: http://info.legalzoom.com/need.....-3621.html.
In short it depends if he’s a single member LLC or LLC taxed as a corporation. For the first one, he doesn’t have to do much (just report the amount as $0 on your 1040). But for the latter, he has to file Form 1120 even if the LLC was inactive.