The IRS sets four payment deadlines each year for people who owe taxes but don't have them withheld from a paycheck
If you're self-employed, a freelancer, a gig worker, or earn income that doesn't have taxes taken out automatically, the IRS expects you to send in estimated tax payments four times a year. These are called quarterly estimated tax payments, and missing them can result in penalties and interest, even if you end up overpaying when you file your annual return.
The four payment dates fall roughly every three months, aligned to calendar quarters. The exact deadline depends on which quarter you're paying for, and the IRS gives you a grace period of a few days into the following quarter for each payment.
Key Takeaways
- Quarterly estimated tax payments are due on April 15, June 15, September 15, and January 15 of the following year, with a few days of grace built into each deadline.
- You owe quarterly payments if you expect to owe $1,000 or more in taxes when you file your return and don't have enough withheld from other income sources.
- The IRS calculates penalties based on how much you underpaid and how late the payment was, so even a partial payment on time is better than a full payment late.
- You can pay online through IRS Direct Pay, by phone, by mail, or through a payment processor, and the method you choose affects when the IRS records your payment as received.
- If your income changes during the year, you can adjust your estimated payments for the remaining quarters rather than overpaying all year.
The four quarterly payment dates and their deadlines
The IRS divides the tax year into four quarters, and each quarter's payment is due a few weeks after the quarter ends. Here are the dates you need to mark on your calendar:
| Quarter | Income Period | Payment Due Date | Grace Period Ends |
|---|---|---|---|
| Q1 | January 1 – March 31 | April 15 | April 18, 2024 (varies by year) |
| Q2 | April 1 – May 31 | June 15 | June 18, 2024 (varies by year) |
| Q3 | June 1 – August 31 | September 15 | September 18, 2024 (varies by year) |
| Q4 | October 1 – December 31 | January 15 (next year) | January 18 (next year, varies) |
The grace period exists because some of these dates fall on weekends or federal holidays. If April 15 falls on a Sunday, for example, the deadline moves to Monday. The IRS website publishes the exact grace period dates each year, so check there if a deadline falls near a weekend.
If you miss a deadline, the IRS charges a penalty on the unpaid amount. The penalty is calculated as a percentage of the underpayment and increases the longer the payment is late. Even if you end up overpaying taxes overall when you file your annual return in April, you still owe the penalty for the quarters you underpaid.
Who needs to make quarterly payments
You're required to make quarterly estimated tax payments if you expect to owe at least $1,000 in federal income tax when you file your return and you won't have enough tax withheld from other sources to cover it. This applies to self-employed people, business owners, freelancers, gig workers, investors, and anyone else with income that doesn't have taxes automatically removed.
If you have a W-2 job and also do freelance work on the side, you might be able to adjust your W-4 withholding at your main job instead of making quarterly payments. This lets your employer take out extra tax from each paycheck, which counts toward your total tax bill. Some people find this simpler than tracking four separate payment dates.
The IRS provides Form 1040-ES to help you calculate how much to pay each quarter. The form walks you through your expected income, deductions, and tax liability for the year, then divides it into four equal payments. If your income is uneven — for example, if you earn most of your money in the summer — you can use the annualized installment method to pay more in high-income quarters and less in slow quarters.
How to calculate your quarterly payment amount
The simplest approach is to estimate your total tax liability for the year, then divide it by four. If you earned $50,000 in self-employment income last year and paid $8,000 in federal taxes, you'd pay roughly $2,000 per quarter this year — assuming your income stays the same.
Form 1040-ES includes a worksheet that accounts for your expected income, the standard deduction, tax credits you plan to claim, and your filing status. You can also use the IRS tax withholding calculator on their website to estimate your total liability. The goal is to pay enough each quarter so that by the time you file your annual return, you're not caught with a large bill or a large refund.
If you underpay, you'll owe interest and a penalty when you file. If you overpay, you'll get a refund or can apply the overpayment to next year's taxes. The IRS doesn't charge interest on overpayments, but you also don't earn interest on the money you sent in early, so many people try to estimate as closely as possible.
How to pay your quarterly taxes
The IRS offers several ways to send in your quarterly payment. The method you choose affects when the IRS records your payment as received, which matters if you're close to a deadline.
IRS Direct Pay is free and lets you pay directly from your bank account through the IRS website. The payment posts immediately, and you get a confirmation number right away. This is the fastest and most reliable method if you're paying online.
Credit or debit card payments go through a third-party processor, and the IRS charges a convenience fee (usually 1.87% to 2.35% of the payment). The payment posts within one business day. This method is useful if you want to earn credit card rewards, but the fee eats into any benefit.
Phone payments let you call the IRS and pay by bank account or card. The number is on Form 1040-ES. This method works if you prefer speaking to someone, but it's slower than online payment.
Mail payments should include a check or money order, your Social Security number or EIN, the tax year, and the quarter you're paying for. Mail payments take longer to process, so send them at least a week before the deadline. The postmark date counts as your payment date, not the date the IRS receives it.
What happens if you miss a payment deadline
If you miss a quarterly deadline, the IRS charges an underpayment penalty on the amount you should have paid. The penalty is calculated using the federal short-term interest rate plus 3%, and it compounds daily. The longer you wait to pay, the larger the penalty grows.
You can reduce or eliminate the penalty if you have a reasonable cause — for example, if you had a sudden job loss or medical emergency that made it impossible to pay on time. You'll need to explain the situation when you file your annual return or contact the IRS directly. The IRS is more likely to waive the penalty if this is your first underpayment and you pay as soon as you can.
Even if you end up overpaying taxes overall when you file your return in April, you still owe the underpayment penalty for any quarter you underpaid. This is why it's important to estimate carefully and adjust your payments if your income changes during the year.
Adjusting your payments if your income changes
If your income is higher or lower than you expected, you can recalculate your remaining quarterly payments instead of sticking with your original estimate. This is especially useful for freelancers and business owners whose income varies by season.
You can use the annualized installment method on Form 1040-ES to pay more in quarters when you earn more money and less in quarters when you earn less. For example, if you're a tax preparer who earns most of your income between January and April, you can pay a larger Q1 payment and smaller payments for Q2, Q3, and Q4.
If you realize mid-year that you've overestimated your income, you can lower your remaining payments to avoid overpaying. Just recalculate using your actual year-to-date income and adjust Q3 and Q4 accordingly. This keeps you from sending the IRS an interest-free loan for nine months.
Frequently Asked Questions
What if I can't pay the full amount by the deadline?
Pay whatever you can by the deadline. The IRS charges a penalty only on the unpaid portion, so a partial payment on time is better than a full payment late. You can set up a payment plan for the remaining balance, or pay it when you file your annual return — though you'll owe interest and penalties on the unpaid amount.
Do I need to make quarterly payments if I'm also an employee with taxes withheld?
Not if your W-4 withholding covers your total tax liability. If you have a side business or investment income, you might need quarterly payments only on that extra income. You can adjust your W-4 at your main job to increase withholding instead, which some people find simpler than tracking four separate deadlines.
What if the deadline falls on a weekend or holiday?
The IRS automatically extends the deadline to the next business day. The exact grace period dates vary by year and are published on the IRS website. If you're mailing a check, the postmark date counts, so mail it a few days early to be safe.
Can I pay all four quarters at once instead of four separate times?
Yes, you can pay your entire year's estimated tax in one lump sum, but the IRS will still charge an underpayment penalty on any quarter you underpaid. Paying all at once makes sense only if you're certain your income won't change and you want to simplify your record-keeping.
What form do I file with my tax return to report quarterly payments?
You don't file a separate form. Your quarterly payments are recorded in the IRS system by your Social Security number or EIN, and they automatically show up when you file your annual return. The IRS matches your payments to your return and calculates any refund or amount owed.