How to Pay Quarterly Taxes

Do you have a profitable side hustle? Are you entirely self-employed? Do you send invoices to get paid rather than than get a paycheck with tax deductions taken out? It’s entirely possible you should be paying quarterly estimated taxes then.
Paying quarterly estimated taxes can be annoyingly scary – not only are you like “WHY ARE YOU TAKING MY MONEY, GOVERNMENT?”

You are responsible for keeping track of how much you get paid. The government website isn’t super fun. The IRS likes to believe they make it easy, but really they don’t. So today we break down how it works.

Where to Go!

– This not-so-handy form called IRS Form 1040-ES which will help you estimate your marginal tax rate
– You can pay your taxes and automatically on the IRS’s website using “direct pay” or you can set up an account on the Electronic Federal Tax Payment System

Deadlines for Quarterly Taxes

For income received Jan. 1 through March 31, estimated tax is due April 15.
For income received April 1 through May 31, estimated tax is due June 15.
For income received June 1 through Aug. 31, estimated tax is due Sept. 15.
And for income received Sept. 1 through Dec. 31, estimated tax is due Jan. 15.

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Notable Replies

diapasoun says:

Thank you for this. Every time I contemplate really starting a side hustle, I feel very intimidated by the accounting (especially quarterly taxes) and then allow that to be one of many excuses for not hustling. Every time I get more info on quarterly taxes that’s clear and helpful, the less that can be an excuse…
anomalily says:

diapasoun:

. Every time I contemplate really starting a side hustle, I feel very intimidated by the accounting (especially quarterly taxes) and then allow that to be one of many excuses for not hustling.

The good news is that the first year of your side hustle, you don’t need to worry about them at all. It’s only for your second year of business and beyond. So go side hustle if it’s what your heart desires!
diapasoun says:

See, things I did not even know there. So much to learn!
Elle says:

My tax software says I might need to pay in installments next year

My government says:

You hustled! Congrats, now you can pay all your cpp because you are self employed

You hustled 30 grand! Level up, you can pay HST and we will make you regret every minute!

You made 40 grand do do do dooooo! New chalkenge: more accounting and quarterly taxes!

I feel so unimpressed

The Feeling of Money Control ..