The IRS requires you to pay estimated taxes four times a year (unless you choose to pay up front for the entire year).
If you haven't paid your estimated taxes
- The IRS will charge a daily penalty that starts on the day that your estimated taxes were due, and ends when they're paid in full.
- The penalty is quite low, only about six to eight percent. For example, let's say you owe $100 in taxes, but haven't paid it. You would only owe about $8 at the end of the year.
Here's the payment schedule for 2017:
- Q1 income received from January 1 to March 31: Estimated tax is due on April 17, 2018.
- Q2 income received from April 1 to May 31: Estimated tax is due on June 15, 2018.
- Q3 income received from June 1 to August 31: Estimated tax is due on September 17, 2018.
- Q4 income received from September 1 to December 31: Estimated tax is due on January 15, 2019.
Note: Due dates are set by the IRS for all self-employed individuals filing a Schedule C.
How due dates work?
The due date is usually on the 15th of every third month. If the 15th falls on a weekend or a federal holiday, the due date is the next business day.Remember, though: The due date for all taxpayers is April 17. You need to make sure that you've paid all your taxes for the previous year by this date.
To see if you owe any penalties or to request a waiver, check out the IRS page Form 2210, Underpayment of Estimated Tax.
Note: Our product can help you estimate your taxes and organize your business income and expenses. However, we're not an official tax preparation service. Our estimate is not a bill from the IRS—we calculate your estimated taxes. We update the calculation as the year goes on and you enter more information.