US Quarterly Estimated Tax Guide
A plain-English guide to estimated tax for self-employment and income not adequately covered by withholding.
Quick answer
Estimated tax is a method of paying income and self-employment taxes during the year when withholding is insufficient. Whether payments are needed depends on expected tax, withholding, refundable credits and applicable safe-harbour rules.
Who should check
- Self-employed individuals and independent contractors.
- People receiving significant interest, dividends, capital gains or rental income.
- Partners, S-corporation shareholders and others receiving pass-through income.
- Employees whose payroll withholding does not cover their expected liability.
A practical workflow
- Estimate full-year income and deductible expenses.
- Calculate expected federal tax using the current Form 1040-ES instructions.
- Subtract expected withholding and eligible credits.
- Schedule payments using an approved IRS payment method.
- Recalculate when income changes materially.
Records and timing
Keep worksheets, payment confirmations and supporting income and expense records. Estimated-tax due dates and special rules can vary, so check the current tax-year instructions rather than relying on an old calendar.
Educational information only: Rules and thresholds can change. Confirm current requirements with the relevant authority or a qualified professional before acting.
