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 and 2014 tax year.
|Quarter||Period||2013 Due Dates||2014 Due Dates|
|Q1||January 1 – March 31||April 15, 2013||April 15, 2014|
|Q2||April 1 – May 31||June 17, 2013||June 15, 2014|
|Q3||June 1 – August 31||September 16, 2013||September 16, 2104|
|Q4||September 1 – December 31||January 15, 2014||January 15, 2015|
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.