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Tax & Compliance
Quarterly Taxes
Definition
Estimated tax payments made four times a year by self-employed individuals and businesses.
Overview
Self-employed individuals must pay estimated taxes quarterly since they don't have employer withholding. Payments cover income tax and self-employment tax.
Example
A freelancer earning $100,000 makes quarterly estimated payments of approximately $7,500 each in April, June, September, and January.
Best Practices
Calculate estimated taxes based on expected income. Pay by deadlines to avoid penalties.
Common Mistakes to Avoid
Missing deadlines
Underestimating payments
Not adjusting for income changes
Frequently Asked Questions
When are quarterly taxes due?
April 15, June 15, September 15, and January 15 of the following year.