Quarterly Taxes for Freelancers Explained (And How to Actually Pay Them)

If you're a freelancer or self-employed in the U.S., here's a fun surprise: the IRS wants you to pay taxes four times a year — not just in April.

It’s called estimated quarterly taxes, and I learned about it the hard way… with a $118 penalty my first year.

This post breaks down what they are, who has to pay them, how to calculate them, and how I set mine up to basically run on autopilot.

What Are Quarterly Taxes?

Quarterly taxes (aka estimated tax payments) are pre-payments to the IRS that cover:

Your federal income tax
Self-employment tax (Social Security & Medicare — ~15.3%)

When you’re a W-2 employee, your employer withholds these for you. But as a freelancer, you’re the boss — so it’s your job to send money in throughout the year.

Who Needs to Pay Them?

If you expect to owe $1,000 or more in federal tax for the year, the IRS expects you to make estimated payments.

Examples:

Freelance writer earning $35,000/year
Uber driver pulling in $22,000 after expenses
Etsy seller with profit over $5,000

If this sounds like you, quarterly payments are not optional — they’re required.

When Are Quarterly Taxes Due?

Here are the 2025 deadlines:

April 15, 2025 – Q1 payment (Jan–Mar income)
June 17, 2025 – Q2 (Apr–May)
September 16, 2025 – Q3 (Jun–Aug)
January 15, 2026 – Q4 (Sep–Dec)

Tip: These don’t match the calendar quarters exactly, so set calendar reminders!

How Do You Calculate Quarterly Taxes?

There are two common methods:

1. Safe Harbor Rule

Pay 100% of what you owed last year, divided by 4.

Why use it: It guarantees you won’t be penalized for underpaying, even if your income goes up.

2. Estimate Based on Current Year

Take your projected net income (income – expenses), calculate:

~15.3% for self-employment tax
+ Your estimated income tax rate (usually 10–24%)

Example: $40,000 projected net → pay ~$6,500 total → $1,625 per quarter

What I do: I use QuickBooks Self-Employed to estimate based on my income each month. Then I cross-check with the IRS worksheet (Form 1040-ES).

How to Actually Pay the IRS

Fastest way: IRS Direct Pay

Steps:

Select “Estimated Tax” as the reason
Use Social Security Number (or EIN)
Choose your bank or card (no account needed)
Get a confirmation and save your receipt

Other options:

Mail a check with Form 1040-ES
Use IRS app or EFTPS.gov (for recurring payments)

What Happens If You Don’t Pay?

You could owe a penalty and interest — even if you get a refund at the end of the year.

My mistake: In 2022, I skipped Q2 and Q3 payments. I owed $2,100 in April — plus a $118 underpayment penalty. Lesson learned.

Pro Tips for Freelancers (From Painful Experience)

Set aside 25–30% of each payment you receive
Put it in a separate “tax savings” account
Automate payments if possible
Don’t wait until the end of the year — it hurts

Bonus: Use a tax calculator like Keeper Tax, FlyFin, or Bonsai Tax to simplify everything.

Final Thoughts: Make Peace With the IRS (Early)

Quarterly taxes aren’t fun. But they’re way easier to handle in chunks than in one terrifying April meltdown.

Set up a system now, and your future self will be thrilled when you don’t owe $3,000 all at once.

If I can figure this out as a full-time freelancer with no math skills and a latte addiction, so can you.

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mangki

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