The IRS requires quarterly estimated tax payments to be filed by all the freelancers who have income that is not subject to automatic withholding (W-2 employees). Thus, if you are self-employed and turning a profit then you probably owe quarterly taxes. In simple words, if you have income that didn't have taxes withheld and you expect to owe $1,000 or more in taxes on all of that combined income in April, then you should consider paying quarterly taxes.

Income received from just about any source is generally subject to income tax. That may include not just the federal income tax, but also the state income tax, and Social Security and Medicare tax.

Generally, as a self-employed individual, you are required to file an annual return and pay your estimated tax quarterly. You must pay self-employment tax (SE tax) as well as income tax. Estimated tax is necessary to pay Social Security and Medicare taxes and income tax because you do not have an employer withholding these taxes for you. Please refer to Form 1040-ES, Estimated Tax for Individuals to figure these taxes.

Flyfin AI automatically finds every deduction automatically. All you have to do is answer a few basic questions and A.I. will accurately calculate your quarterly tax payments. The entire process hardly takes five minutes. Moreover, you get to consult a CPA to prepare your quarterly taxes for free.

For estimated tax purposes, the year is divided into four payment periods. Each period has a specific payment due date. The due dates are-

You can report all your estimated tax payments on Schedule 3 (Form 1040). Don’t forget to include any overpayment that you elected to credit from your prior-year tax return.

It’s usually better to seek help from a tax expert if your taxes seem complicated. FlyFin AI offers the world's most accurate quarterly tax calculator along with a free CPA review.

If you don't pay enough tax through withholding and estimated tax payments, you may be charged a Penalty. You also may be charged a penalty if your estimated tax payments are late, even if you are due a refund when you file your tax return.