Quarterly Estimated Tax Calculator for On-Time Payments

Quarterly Estimated Tax Calculator FAQs

How do you use a quarterly estimated tax calculator?

Using 1-800Accountant's quarterly estimated tax calculator to yield accurate quarterly estimates is quick and easy. Simply input your income tax information in the required fields and click "Calculate" to view your results. The results provide a better view of your quarterly tax liability, ensuring enough tax to avoid an underpayment penalty.

Who has to pay quarterly estimated taxes?

Business owners, entrepreneurs, and self-employed individuals who earn above a certain income threshold must pay federal estimated taxes every quarter. If making accurate calculations and submitting your payments by each due date has been challenging, consider using 1-800Accountant's quarterly estimated tax service. 1-800Accountant offers a suite of financial services for small businesses, including the preparation and filing of your current year tax return, and catch-up bookkeeping if you’ve fallen behind in the last year, all while addressing federal income tax and your self-employment tax. This enables us to minimize small business taxpayers’ tax bills in every industry in all 50 states.  

How do you figure out how much you owe in quarterly estimated taxes?

Calculating estimated tax payments involves three steps: calculating your taxable income based on your marital status and income, computing any tax credits and tax deductions you may be eligible for, and calculating your remaining tax due. 

What information do you need to determine your quarterly estimated taxes?

To determine your quarterly estimated taxes, you'll need your year-to-date business profit, W-2 income, taxes you've withheld from your W-2 job, total quarterly tax payments you've made, and current marital status. 

Can you pay your estimated taxes all at once?

If you're confident in the accuracy of your quarterly estimated tax calculations, most businesses can submit payments to the IRS all at once instead of in installments. Use IRS Form 1040-ES to submit all of your quarterly estimated tax payments for the tax year.

Do you need to pay the same amount in quarterly estimated taxes every quarter?

Most quarterly estimated tax payments will vary from quarter to quarter due to many factors impacting revenue, such as seasonality. This is typically true whether you operate as a freelancer, sole proprietor, or other small business type.

Do quarterly payments need to be paid for both the state and federal taxes?

Some states require quarterly estimated state tax payments in addition to what your business submits to the IRS. The rules, forms, and materials each state requires to calculate and submit an estimated tax payment may vary. 

How do you pay quarterly estimated taxes?

The IRS accepts quarterly estimated tax payments electronically via the Electronic Federal Tax Payment System (EFTPS), by phone and mail. Fees may apply depending on the method you choose.