Quarterly Estimated Taxes: A Guide for Freelancers and Self-Employed Professionals

If you're self-employed, freelance, or run your own business, taxes don't get withheld from your paycheck automatically — that's your responsibility. The IRS requires most self-employed individuals to pay taxes four times per year through estimated tax payments.

Missing these payments, or underpaying, results in penalties even if you pay your full balance by April. Here's what you need to know.

Who Needs to Pay Estimated Taxes?

You generally owe quarterly estimated taxes if:

• You expect to owe $1,000 or more in federal taxes for the year
• Your withholding and credits will cover less than 90% of your current-year tax liability
• Your withholding covers less than 100% of last year's tax (110% for higher earners)

This applies to freelancers, consultants, gig workers, sole proprietors, and partners in a partnership.

The 2026 Quarterly Due Dates

"Many freelancers are shocked to learn their April tax bill includes a penalty — not because they owe too much, but because they didn't pay on time throughout the year."

How to Calculate What You Owe

The simplest approach is the safe harbor method:

• Pay at least 100% of last year's tax liability (divided into four equal payments)
• If your AGI last year exceeded $150,000, pay 110% of last year's liability

This protects you from underpayment penalties regardless of what you ultimately owe.

Alternatively, estimate your current-year income and apply your expected tax rate — more accurate, but requires ongoing tracking.

Setting Aside the Right Amount

A common rule of thumb: set aside 25–30% of every payment you receive into a separate savings account designated for taxes. Adjust upward if you're in a higher bracket or have significant self-employment income.

Don't Overpay Either

Overpaying estimated taxes means you've given the government an interest-free loan. With proper planning, you can calibrate payments closely to your actual liability.

Let Kamish & Associates Handle the Math

We help Tampa Bay freelancers and self-employed professionals calculate their quarterly obligations accurately, set up payment reminders, and integrate tax planning into their overall financial strategy.

Contact us at admin@kamishcpa.com or call 813-560-1832 — we make estimated taxes simple.