📅 Day 12: Quarterly Taxes – A Simple Payment Plan Guide

 📅 Day 12: Quarterly Taxes – A Simple Payment Plan Guide

If you're self-employed or running a side business, quarterly taxes can feel like a ticking clock. Unlike traditional employees, you’re expected to pay taxes as you earn, four times a year. But what happens when cash flow is tight, deadlines sneak up, or life just gets in the way? That’s where a simple payment plan strategy can turn stress into structure.

🎯 Who Needs Quarterly Payments?

If you expect to owe $1,000 or more in federal income tax (after subtracting withholdings and credits), the IRS wants you to pay quarterly:

• April 15
• June 15
• September 15
• January 15 of the following year

This includes gig workers, freelancers, small business owners, and even side hustlers with no employer withholding.

💡 Building a Simple Payment Plan (Not the IRS One—Your Own!)

Here’s a low-stress method to set aside taxes ahead of each deadline:

Step 1: Estimate Your Annual Tax Liability

• Use last year’s return as a baseline
• Or plug numbers into a tax calculator for self-employment income

Step 2: Break It into Quarters

Let’s say your estimated federal tax is $4,800 →
Divide by four = $1,200 per quarter

Step 3: Set Up Weekly Transfers

• $1,200 ÷ 13 weeks = about $92/week
• Set up an auto-transfer every Friday from your business account to a dedicated “Tax Savings” account
• Optional: Save an additional 15% for state taxes if applicable

Step 4: Pay Online

Use the IRS’s Direct Pay or EFTPS system to submit your quarterly payment before the deadline. You'll avoid penalties and interest by paying consistently.

🤔 Behind or Can't Pay in Full?

If you're already behind:

• File your estimated payment anyway
• Use the IRS payment plan tool to request a monthly installment plan
• Penalties may apply, but it’s better than ignoring the obligation

✅ Bonus Tips

• Use a digital tracker (like your planner or spreadsheet) to log payments and reminders
• Schedule quarterly check-ins to update projections as income shifts
• Avoid the “January surprise” by saving more during high-income months

Quarterly taxes don’t have to be scary—they just need a rhythm. The moment you automate your plan, it becomes one less thing to worry about and one more step toward sustainable self-employment.

Want to download a printable tracker or plug this into your planner system? I’d love to help you build one that fits your workflow.