When Quarterly Tax Payments Are Due and How to Send Them
The Four Quarterly Payment Dates Each Year
Quarterly estimated tax payments are due on specific dates set by the IRS, and missing them costs you penalties and interest even if you end up owing nothing at tax time. The four payment dates are: April 15 (for income earned January through March), June 15 (April through May), September 15 (June through August), and January 15 of the following year (September through December). If any date falls on a weekend or federal holiday, the deadline moves to the next business day.
You owe quarterly payments if you expect to owe $1,000 or more in federal income tax for the year and your income is not subject to withholding—meaning you are self-employed, a freelancer, a gig worker, an investor, or have other income sources where an employer does not deduct taxes from your paycheck. If you are an employee and your employer withholds taxes, you do not make quarterly payments; your employer handles that for you.
The IRS does not send you a bill or a reminder. You calculate what you owe based on your expected income for the year, and you send the payment yourself by the deadline. If you do not pay or underpay, the IRS charges a penalty starting the day after the deadline passes, even if you file your tax return on time in April.
Key Takeaways
- Quarterly payments are due April 15, June 15, September 15, and January 15, and the IRS does not send reminders or bills.
- You owe quarterly payments only if you expect to owe $1,000 or more in federal income tax and your income is not subject to withholding from an employer.
- You calculate each quarterly payment yourself based on your expected annual income, and the IRS charges penalties for late or missing payments starting the day after the deadline.
- You can pay online through IRS Direct Pay, by mail with Form 1040-ES, or through a tax professional, and each method has different processing times.
How to Calculate Your Quarterly Payment Amount
The IRS provides Form 1040-ES (Estimated Tax for Individuals) to help you calculate what to pay each quarter. The form includes a worksheet where you estimate your total income for the year, subtract deductions, and calculate your expected tax liability. You then divide that total by four to get your quarterly payment amount. The form is free and available on the IRS website.
If your income is uneven across the year—for example, you earn more in summer than winter—you can pay different amounts each quarter instead of dividing evenly. This is called the annualized installment method and requires more detailed calculation, but it can reduce or eliminate penalties if your income actually varies. Many tax software programs and tax professionals can calculate this for you.
If you underpay or miss a payment, you can still make it up later, but you will owe a penalty on the shortfall from the original due date. The penalty is calculated daily and compounds, so the longer you wait, the more you owe. If you realize mid-year that you underpaid, you can increase your remaining quarterly payments to catch up and reduce the total penalty.
Three Ways to Send Your Quarterly Payment
Online through IRS Direct Pay is the fastest and most common method. You go to irs.gov, select "Pay Now," choose Direct Pay, and enter your payment amount and due date. The payment posts immediately, and you receive a confirmation number. There is no fee. The money is withdrawn from your bank account on the date you specify, which can be the same day or up to 30 days in the future. This method works for all payment amounts.
By mail with Form 1040-ES is the traditional method. You print the form, fill in your payment amount, write a check, and mail both to the IRS address listed on the form (the address varies by state). Include your Social Security number or Employer Identification Number on the check. Mail takes 7 to 10 business days to reach the IRS, so send it at least a week before the deadline. The postmark date counts as the payment date, not the date the IRS receives it.
Through a tax professional or accounting software is a third option. Many tax software programs allow you to pay directly through their platform, and they handle sending the payment to the IRS on your behalf. Tax professionals can also submit payments for you. Both methods charge a fee, usually $2 to $15 per payment, but they handle the calculation and timing for you. This is useful if your income is complex or you want someone else to manage the dates.
What Happens If You Miss a Payment or Pay Late
The IRS charges two separate penalties for missed or late quarterly payments: an underpayment penalty and interest. The underpayment penalty is calculated as a percentage of the amount you should have paid, and the rate changes quarterly based on federal interest rates. Interest accrues daily from the due date until you pay. Both penalties apply even if you file your tax return on time in April and pay the full amount owed.
You cannot avoid the penalty by paying everything at tax time. If you owed $5,000 in quarterly payments and paid nothing until April 15 of the following year, you owe the full $5,000 plus penalties and interest on each missed payment from its original due date. The penalty for the first missed payment (April 15) will be larger than the penalty for the last missed payment (January 15) because it has accrued for longer.
If you have a legitimate reason for missing a payment—such as a serious illness, death in the family, or unavoidable absence—you can request a penalty waiver by filing Form 2210 with your tax return and explaining the reason. The IRS grants waivers for reasonable cause, but you must request them; they are not automatic. You still owe the tax and interest, but the penalty may be reduced or removed.
Adjusting Your Payments If Your Income Changes
If your income changes during the year, you can adjust your remaining quarterly payments instead of sticking to the original amount. For example, if you expected to earn $60,000 but by June you realize you will only earn $40,000, you can lower your July and October payments. Conversely, if you are earning more than expected, you can increase your payments to avoid a large bill at tax time.
To adjust, recalculate your expected annual income using Form 1040-ES, figure out what you should have paid through the current quarter, and adjust your next payment to make up any shortfall or reduce it if you overpaid. This is called safe harbor protection: if you pay 100% of your prior year's tax liability (or 90% of your current year's liability, whichever is smaller) by the deadline, you avoid underpayment penalties, even if you end up owing more at tax time.
Many self-employed people and freelancers set aside a percentage of each payment they receive into a separate savings account throughout the year, then divide that total by four to determine their quarterly payments. This method smooths out the burden and makes it easier to adjust if income is uneven.
Quarterly Payments and Your Tax Return
When you file your federal income tax return in April, you report all the quarterly payments you made during the year. The IRS matches these payments to your Social Security number or Employer Identification Number, so they already know what you paid. If you paid more than you owed, you receive a refund. If you paid less, you owe the difference plus any applicable interest and penalties.
Your quarterly payments are credited against your total tax liability for the year, not treated as separate transactions. This means if you paid $2,000 per quarter ($8,000 total) but your actual tax liability is $7,500, you will receive a $500 refund. If your liability is $9,000, you owe $1,000 plus any underpayment penalties for the quarters when you underpaid.
Keep records of all quarterly payments, including confirmation numbers from online payments or cancelled checks from mailed payments. If the IRS ever questions whether you paid, you will need proof. The IRS records are usually accurate, but errors happen, and having your own documentation protects you.
Who Must Make Quarterly Payments and Who Does Not
You must make quarterly payments if you are self-employed (Schedule C), a partner in a business (Schedule E), a sole proprietor, a freelancer, a contractor, or have significant investment income (capital gains, dividends, rental income) and expect to owe $1,000 or more in federal income tax. You also must make quarterly payments if you have other income not subject to withholding, such as alimony received or income from a trust.
You do not have to make quarterly payments if you are a W-2 employee and your employer withholds taxes from your paycheck, even if you have a side job. However, if your side job income is substantial, you may want to increase your W-2 withholding or make quarterly payments to avoid a large bill at tax time. You can adjust your W-4 form with your employer to have more tax withheld from each paycheck instead of making separate quarterly payments.
If you are unsure whether you need to make quarterly payments, calculate your expected tax liability for the year using Form 1040-ES. If it is $1,000 or more and you have no withholding, you should make quarterly payments. If you are close to the threshold, it is safer to make payments than to risk penalties.
Frequently Asked Questions
What if the quarterly payment due date falls on a weekend or holiday?
The deadline automatically moves to the next business day. For example, if June 15 falls on a Saturday, your payment is due on Monday, June 17. The IRS website lists the actual due dates each year accounting for weekends and federal holidays, so check there if a date seems off.
Can I make one large payment instead of four quarterly payments?
You can, but you will owe underpayment penalties on the amounts that were late. If you owe $8,000 total and pay it all on January 15 instead of spreading it across four quarters, you will owe penalties on the $2,000 that was due April 15, the $2,000 due June 15, and the $2,000 due September 15. It is better to pay on time each quarter.
Do I need to make a quarterly payment if I expect to break even or have a loss?
No. Quarterly payments are only required if you expect to owe $1,000 or more in federal income tax. If you expect to break even or have a loss, you do not need to make quarterly payments. However, if you are unsure, it is safer to make a small payment than to underpay and face penalties.
What if I did not know I was supposed to make quarterly payments?
You still owe the tax, interest, and penalties. However, you can request a penalty waiver by filing Form 2210 with your tax return and explaining that you were unaware of the requirement. The IRS may grant reasonable cause relief, but it is not may provide. Going forward, set a calendar reminder for each quarterly due date.
Can I pay my quarterly taxes with a credit card?
Yes, but there is a fee. The IRS does not accept credit cards directly, but third-party payment processors do. You can pay through the IRS website using a credit card, and the processor charges a convenience fee (usually 1.87% to 2.35% of the payment amount). For a $2,000 payment, this could be $37 to $47. Direct Pay (bank account) has no fee and is cheaper.