Quarterly Taxes Explained: Do You Need to Pay & How to Calculate

“Do I really need to pay quarterly taxes?”
If you're a freelancer, coach, service provider, LLC owner, or just recently started making income from your business—this is one of the most important questions you can ask (especially during tax season).

Many small business owners find out too late that they should have been making estimated tax payments—and end up with a surprise tax bill and penalties.

Here’s how to determine if you need to pay quarterly estimated taxes, how much, and how to stay ahead of the IRS.

🔍 Who Needs to Pay Quarterly Estimated Taxes?

According to the IRS, you must make estimated tax payments if:

✅ You expect to owe at least $1,000 in federal taxes for the year (after subtracting credits and withholding)
✅ You have income that isn’t subject to withholding, such as:

• Self-employment income

• Side hustle income

• Rental income

• Dividends or interest

• S-Corp pass-through (K-1) profits

If you're not receiving a W-2 with regular tax withholding—you're responsible for paying taxes yourself as you earn income.

💼 Common Scenarios That Require Estimated Payments

• You're a sole proprietor bringing in $3K/month or more

• You're a single-member LLC making over $30K/year

• You just started a side hustle and it took off

• You own an S-Corp LLC and take profit distributions

• You're a freelancer with no taxes withheld from payments

If any of these apply to you—quarterly taxes likely do, too.

🔢 How to Calculate Your Quarterly Tax Payments

1. Estimate your annual net income (revenue – expenses)

2. Multiply by 25–30% to account for income + self-employment tax

3. Divide by 4 for quarterly payment amounts

4. Pay on these dates:

   • April 15

   • June 15

   • September 15

   • January 15 (next year)

Pro Tip: Use IRS Form 1040-ES or QuickBooks Online to auto-calculate.

❓ FAQ: Do I Really Need to Pay Estimated Taxes?

Q: What if I just started my business this year?
A: If you don’t expect to owe more than $1,000 in taxes, you might not need to. But if you're gaining traction—start tracking and preparing now.

Q: Can I wait and just pay everything at tax time?
A: Technically yes—but you may owe IRS underpayment penalties, even if you pay in full by April 15.

Q: How do I know how much I’ll owe?
A: That’s where clean books and financial reporting matter. Tools like QuickBooks—and a good bookkeeper—help you estimate accurately and avoid surprises.

💡 “Quarterly taxes aren’t just a tax requirement—they’re a business habit that keeps you cash-ready and stress-free.”
Dr. Bryan Raya has helped countless entrepreneurs set up smart quarterly tax systems, avoid penalties, and stay confident in their numbers.

📞 Schedule your free call with Dr. Bryan Raya today to determine your estimated tax obligations—and start Doing Business Right.

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