Your Complete Guide to Quarterly Taxes

As the Name States, the Quarterly Estimated Taxes Are Periodic Payments That Taxpayers Make Throughout the Year. Generally, Quarterly Taxes Are Paid by Self-employed Individuals, Independent Contractors, or Sole Proprietors to Cover Both Income and Taxes (Medicare and Social Security), as There is No Tax Withholding.

Independent Contractors, Gig Workers, Members of a Partnership, Self-employed, or Sole Proprietors Who Owe $1000 or More in Taxes Need to Pay Estimated Taxes Quarterly.

Generally, the Estimated Quarterly Taxes Are Due on or Around the 15th of the Following Months: April 15 (January to March Income), June 15 (April to May Income), September 15 (June to August Income), and January 15 of the Following Year (September to December Income). Further, These Dates Can Shift to the Next Business Day if They Fall on a Weekend or Holiday.

You Can Estimate Your Quarterly Taxes in Two Ways. First, 90% of Your Tax Liability for Your Current Year. Additionally, 100% of the Tax Liability of Last Year. It Can Be 110% if Your Adjusted Gross Income is More Than $75000 for Singles and $150000 for Married Couples Filing Taxes Jointly.

If Your Income Fluctuates During the Year, You Can Adjust Your Estimated Tax Payments Accordingly. To Do So, the Irs Provides an Annualized Installment Method to the People. It Helps in Avoiding Penalties When Income is Spread Unevenly.