Quarterly Estimated Taxes: Are You On Track?If you're a small business owner or self-employed, staying on top of quarterly estimated taxes isn’t just a good habit—it's crucial.

Unlike traditional employees, who have taxes withheld from each paycheck, entrepreneurs and freelancers are responsible for calculating and paying their own taxes throughout the year.

Why Quarterly Estimated Taxes Matter

The IRS requires individuals who expect to owe at least $1,000 in taxes for the year—after subtracting withholding and credits—to make quarterly estimated tax payments. This includes income from self-employment, rental properties, dividends, and other sources.

Failing to make these payments on time can result in underpayment penalties, even if you pay in full by the end of the year. That’s why it's important to understand due dates, how much to pay, and how to stay organized.

Quarterly Due Dates for 2025:

• April 15, 2025 – 1st Quarter (January 1 – March 31)

• June 16, 2025 – 2nd Quarter (April 1 – May 31)

• September 15, 2025 – 3rd Quarter (June 1 – August 31)

• January 15, 2026 – 4th Quarter (September 1 – December 31)

Note: If the due date falls on a weekend or holiday, it moves to the next business day.

How Much Should You Pay?

The general rule is to pay either:

1. 90% of your current year’s tax liability, or

2. 100% of last year’s total tax (110% if your adjusted gross income exceeds $150,000).

Estimating your income accurately is key, especially if your income fluctuates seasonally. Using IRS Form 1040-ES, you can calculate your estimated taxes for the year, divide it into four payments, and stay compliant.

The Role of Bookkeeping in Staying on Track

Here’s where having a bookkeeper or accountant makes a significant difference. Accurate records mean accurate estimates.

• Businesses that use a professional bookkeeper are 50% more likely to survive past five years, according to the U.S. Small Business Administration.

• Conversely, many small businesses that fail cite poor financial management as a key reason for closing.

When your books are in order, it’s easier to:

• Track income and deductible expenses.

• Stay current on tax obligations.

• Avoid surprises at tax time.

A professional accountant can help you not only calculate estimated taxes but also identify deductions and tax credits that lower your liability.

Penalties for Missing Estimated Payments

Miss a payment? The IRS may charge a penalty based on how much you underpaid and how late the payment is. Even if you are due a refund at the end of the year, underpaying during the year can still result in penalties.

Tip: Use the IRS Penalty Calculator or consult your accountant if you're unsure.

How to Pay Estimated Taxes

You can pay estimated taxes online via:

• IRS Direct Pay

• Electronic Federal Tax Payment System (EFTPS)

• Credit/debit card (fees apply)

• Check or money order (by mail)

Automating your payments or setting reminders is a smart way to avoid missed deadlines.

Why Partner with The Accountant, LLC

At The Accountant, LLC, we specialize in providing accurate bookkeeping, monthly financial reports, and profit and loss statements to help you stay on top of your business finances. Our tailored services support small business owners and self-employed professionals by making it easy to stay organized and prepared for tax time.

With our help, you can:

• Keep clear, up-to-date records of income and expenses.

• Receive detailed monthly financial reports that give insight into your business performance.

• Understand your profit and loss each month, making estimated tax payments easier to calculate.

• Make informed decisions based on accurate, reliable data.

Our goal is to help you manage your financials efficiently, so you can focus on running and growing your business with confidence.

Are You On Track? Let’s Review Together

Now is a great time to review your income and expenses from the first quarter and ensure you’re on track for your next estimated tax payment. If you're unsure or need guidance, our team is here to help.

Final Thoughts: Stay Ahead, Stay Compliant

Quarterly estimated taxes don’t have to be stressful. With the right tools, accurate records, and a trusted financial partner, you can stay compliant, avoid penalties, and keep your business on a path to success.

Book a consultation with The Accountant, LLC today, and let’s ensure your estimated taxes—and your business—are right on track.