Quarterly Tax Payments: How To Pay Taxes Incrementally

If you are self-employed, you will have to pay quarterly tax payments to the IRS. This process can seem confusing if you have never done it before. Here are the basics of quarterly tax payments and how to pay them.

Quarterly Tax Payments

When you are self-employed, you will need to try to determine how much money you are going to make for the year. You will then need to calculate what you would pay in taxes if you made this amount of money. At that point, you will need to divide that total by four, and this will represent the amount of your quarterly tax payment.

Paying the Taxes

When paying quarterly tax payments, you will have to be aware of four different deadlines. The first payment is due January 15.  The second is due on April 15. The third is due June 15, and the fourth is due September 15.

You need to make sure that you get your payments in by these due dates so that you will not have any late fees assessed. You can mail the payments to the IRS, or you can visit their website and pay online.

In order to send in your payments through the mail, you will need to use Form 1040-ES from the IRS. You will have a small coupon that you can detach on the bottom of the form and fill in with your payment amount as well as your Social Security number.