For all the freelancers, small business owners and self-employed individuals out there, staying on top of when the estimated tax payments are due is important to help you stay within the IRS tax payment guideline and avoid penalty. Making estimated tax payments also helps you avoid financial shortfall when you file your tax returns. Here’s the full schedule for 2012 and 2013 tax year.
|Quarter||Period||2012 Due Dates||2013 Due Dates|
|Q1||January 1 – March 31||April 17, 2012||April 15, 2013|
|Q2||April 1 – May 31||June 15, 2012||June 17, 2013|
|Q3||June 1 – August 31||September 17, 2012||September 16, 2013|
|Q4||September 1 – December 31||January 15, 2013||January 15, 2014|
Remember you have to pay both the IRS and your State. Hopefully, you have been saving up for this and have money in a savings account to cover the tax payments.
Frequently Asked Questions
Shouldn’t the June date actually be July?
June the correct date. Q2 payment is due faster than the rest and you only have to pay taxes against 2 months’ worth of earnings (April and May). Subsequently, this means Q3 payment occurs in September and Q4 payment encompasses 4 months of income instead of three.
How can I lower my tax payments?
You can lower your tax liabilities by participating in a retirement plan designed for self-employed individuals and business owners.
Will the IRS send me the quarterly estimated tax forms in order for me to send in my estimated tax?
No, you have to calculate the amount for both the Federal and States taxes. For Federal, you have to complete Form 1040-ES and send it along with your payment. For State, you have to search online for the appropriate form, complete it and send it in with your payment.
Alternatively, you can submit your Federal payment electronically via EFTPS; and most States should have the online equivalent.
Where should I send the estimated tax payments?
For Federal payment, the answer depends on where you live. Check the instruction included in Form 1040-ES for the correct mailing address. Similarly, check with your State tax department for the correct mailing address for your State payment.
Do quarterly tax payments have to be received by the due date or just post marked by then?
The deadline is the postmarked date.
Can the quarterly payment amount change each quarter?
Yes, the amounts can be different for each quarter depending on your earnings.