If you don’t have enough tax withheld from paychecks—or you earn 1099 income—you may need to pay quarterly estimated taxes. Here’s how to stay compliant and avoid penalties.

Who needs to pay estimated taxes?

You likely do if you:

• Are self‑employed or a contractor
• Have rental or investment income
• Owe $1,000+ at tax time after credits and withholding

Estimated tax due dates

Quarterly payments are typically due in April, June, September, and January. Missing a payment can trigger penalties.

How much should you pay?

Two common safe approaches:

• Pay 90% of the current year’s tax, or
• Pay 100% of last year’s tax (110% for higher incomes)

W‑4 updates can reduce surprises

If you’re a W‑2 employee with side income, updating your W‑4 can cover estimated tax needs without separate payments.

Need a tax plan that fits your income?

We’ll calculate safe estimates and optimize withholding. See Tax Planning & Withholding or Contact Practical Tax.