Because no tax is withheld from freelance income, the IRS expects you to pay during the year through estimated tax payments. Paying too little can lead to an underpayment penalty.
The basics
- Payments are usually due in April, June, September and January
- You can pay online through IRS Direct Pay, your IRS online account or EFTPS
- Many states also require estimated payments
Safe harbor rules
You can generally avoid a penalty if you pay at least 90% of this year's tax, or 100% of last year's tax (110% if last year's adjusted gross income was over $150,000), through withholding and timely estimated payments.
See the dates
Our quarterly tax calendar shows each period and payment.
General information, not tax advice. Check IRS.gov for current rules and dates. Pocket Change Pros isn't paid by any bank, software company or tax service.