Quarterly Taxes Explained: Do You Need to Pay & How to Calculate
You’re a sole proprietor—maybe a photographer, coach, massage therapist, or freelancer—and business is finally picking up.
But then tax season hits and your CPA asks:
“Did you pay your quarterly estimated taxes?”
And you freeze.
Wait… I was supposed to do that?
If you’re self-employed, chances are yes—you need to be paying quarterly estimated taxes. But don’t panic. This post breaks down exactly what they are, who needs to pay, and how to calculate what you owe.
📌 What Are Quarterly Estimated Taxes?
Quarterly taxes are pre-payments of the income and self-employment tax you’ll owe at the end of the year. The IRS doesn’t want to wait until April 15—you’re expected to pay as you earn.
🧾 Do Sole Proprietors Need to Pay Quarterly Taxes?
✅ Yes, if you expect to owe $1,000 or more in taxes this year
If you’re profitable, even part-time, and not having taxes withheld (like on a W-2), the IRS expects quarterly payments.
✅ You’re on the hook for both income and self-employment tax
That includes Social Security and Medicare (15.3%), plus federal income tax.
✅ Even side hustlers often need to pay
Earn just $500/month from your business? That’s still $6,000/year—and yes, it counts.
🔢 How to Calculate Your Estimated Quarterly Tax Payments
Estimate your annual net profit (Revenue - Expenses)
Example: $40,000 profit from your photography business.Apply a tax rate of 25–30% as a rule of thumb
That covers federal income + self-employment tax.
Example: 30% of $40,000 = $12,000 per yearDivide by 4 to get your quarterly payment
$12,000 ÷ 4 = $3,000 per quarterUse IRS Form 1040-ES or pay online via EFTPS or IRS Direct Pay.
📅 Quarterly Tax Due Dates
April 15
June 15
September 15
January 15 (of the next year)
Mark your calendar—or better yet, automate reminders so you don’t miss a deadline.
❓ FAQ: Estimated Taxes for the Self-Employed
Q: What happens if I don’t pay quarterly taxes?
A: You could owe penalties and interest—even if you pay in full by April. The IRS charges you for not paying throughout the year.
Q: What if I just started my business?
A: If you haven’t made much profit yet, you may not need to pay this year. But if your income grows, get ahead of it with good bookkeeping.
Q: Can I skip quarterly payments and just pay at tax time?
A: Technically yes—but you’ll likely owe more and face penalties. It's smarter (and less stressful) to pay as you go.
💡 “Quarterly taxes aren’t a punishment—they’re a way to protect your business from big surprises.”
Dr. Bryan Raya helps sole proprietors get ahead of tax season with smart systems, clear reporting, and peace of mind.
📞 Book your free call with Dr. Raya today to calculate what you owe, set up a payment plan, and start Doing Business Right.
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