How to Keep Your Quarterly Tax Payments on Track

Are you unknowingly giving the IRS a loan or risking penalties by underpaying? Staying on top of quarterly tax payments is crucial for business owners to avoid surprises and keep cash flow steady. At Edgewater CPA Group, we make tax planning simple so you can focus on growing your business instead of stressing over deadlines. Here’s how to stay on track and avoid costly mistakes.

Who Needs to Pay Quarterly Taxes

If you’re a self-employed individual, freelancer, or business owner, you likely need to make estimated tax payments. This applies to:

Sole proprietors
Partnerships
S-Corporations
Business owners who expect to owe $1,000 or more in taxes for the year

If you’re earning income without tax being withheld (like a traditional W-2 job), the IRS expects you to make payments throughout the year rather than waiting until April 15.

How to Calculate and Pay Your Quarterly Taxes

The IRS recommends estimating your total income, deductions, and credits for the year to determine your expected tax liability. Divide that number by four, and voilà—you have your estimated tax payment amount. But we know tax calculations can feel overwhelming, which is why working with a professional accountant can save you time and headaches.

You can submit payments online through the IRS Electronic Federal Tax Payment System (EFTPS), by mail, or even through certain tax software programs.

Key Deadlines to Remember

The IRS has set due dates for quarterly tax payments:

April 15 (for income earned January – March)
June 15 (for income earned April – May)
September 15 (for income earned June – August)
January 15 (for income earned September – December)

Missing a deadline could result in costly penalties, so mark these dates on your calendar!

Avoiding IRS Penalties and Staying on Track

To prevent underpayment penalties, ensure you’re paying at least 90% of your current year’s tax liability (or 100% of last year’s if that amount was higher). Setting aside a portion of your earnings each month for taxes is a simple yet effective way to stay prepared.

Let’s Make Tax Season Less Taxing

Managing quarterly taxes doesn’t have to be stressful. At Edgewater CPA Group, we specialize in helping businesses navigate tax planning, tax resolution, and profitability strategies. If you’re tired of the guesswork and want expert guidance, we’re here to help. Schedule your consultation with our Carmel, IN, team today at (317) 386-7021 and take control of your business finances with confidence!

Edgewater CPA Group