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How Founders Can Handle Quarterly Taxes with Confidence

A First-Time Founder’s Guide to Quarterly Taxes

AUTHORS
Bryanna Fissori, J.D. & Theresa Johnson, CPA
PUBLISHED
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Person working on financial calculations at a desk with a calculator, notebook, and laptop.

So, you’ve finally taken the leap and launched your own business. Whether you’re freelancing, running a solo venture, or hustling through your first startup, one of the least fun (but still important) parts of being your own boss is figuring out quarterly taxes.

If you’ve never dealt with estimated tax payments before, don’t sweat it; we’ve got your back. This guide breaks down what quarterly taxes are, when to pay them, how to calculate what you owe, and how to avoid getting hit with penalties later on.

What Are Quarterly Taxes?

Let’s start with the basics: What are quarterly taxes? When you’re an employee, your employer withholds income and payroll taxes from every paycheck and sends them to the IRS. But when you’re self-employed, the IRS expects you to do that yourself, four times a year. These are called estimated quarterly tax payments, and they cover your income tax and self-employment tax, which includes Social Security and Medicare.

If you expect to owe at least $1,000 in federal taxes for the year after subtracting withholdings and refundable credits, the IRS requires you to pay estimated taxes. You can read more about this in IRS Publication 505.

If you're self-employed and expect to owe $1,000 or more, the IRS wants you to pay estimated taxes—four times a year.

Quarterly Tax Dates You Need to Know

Don’t miss these! Here are the standard quarterly tax dates:

  • April 15: for the payment period Jan 1–Mar 31

  • June 15: for the payment period Apr 1–May 31

  • September 15: for the payment period Jun 1–Aug 31

  • January 15 (of the following year): for the payment period Sep 1–Dec 31

If the date falls on a weekend or holiday, the deadline is bumped to the next business day. Go ahead and set calendar reminders for these dates.

How to Calculate Your Quarterly Taxes

To figure out how much you owe each quarter, start by estimating your total income for the year. Subtract business expenses, apply the correct tax rates, and divide by four. The IRS wants you to pay income tax based on your tax bracket, and self-employment tax, which is 15.3% (12.4% Social Security + 2.9% Medicare). 

You can calculate your estimated taxes manually, but tools like IRS Form 1040-ES include a worksheet to help you out. If spreadsheets make your head spin, apps like QuickBooks, Keeper, or even TurboTax Self-Employed can help automate this.

Phone With Calculator App Open In Hand

How to Pay Quarterly Taxes Online

Now that you know when to pay quarterly taxes, let’s talk about the how, because sending the IRS a handwritten check every few months is not efficient. Thankfully, paying your quarterly taxes online is quick, secure, and gives you an instant receipt. Here are your best options, step-by-step.

1. IRS Direct Pay (Recommended for Simplicity)

If you’re paying directly from your bank account, using IRS Direct Pay is the easiest and most straightforward method. Here’s how:

  • Go to IRS Direct Pay

  • Choose “Estimated Tax” as your payment type

  • Select the tax year

  • Enter your info and bank account details

You’ll get a confirmation number, which you can screenshot or save the PDF for your records.

2. Electronic Federal Tax Payment System (EFTPS)

If you're planning to make quarterly payments regularly, which you should, EFTPS is a great long-term solution.

  • Go to EFTPS.gov

  • Create an account (this takes a few days because they mail you a PIN)

  • Once set up, you can schedule all your quarterly payments in advance

This system works for businesses and individuals, allows you to see payment history, and supports recurring payments. You can set it and forget it by scheduling all four quarterly payments for the year at once. Of course, if your income increases or decreases significantly during the year, you might want or need to revise your scheduled payments accordingly.

3. IRS2Go App

Yes, the IRS has an app! It’s called IRS2Go, and you can download it from the App Store or Google Play. You can use Direct Pay or a debit/credit card through the app, and it’s handy if you’re on the go and just remembered your payment is due. The app also offers some tax assistance resources. 

4. Pay by Debit or Credit Card (with a Fee)

If you want to rack up those credit card points (or need more cash flow flexibility), you can pay quarterly taxes by card. Note that there will be a fee, which varies by payment provider. Visit IRS Payments for a list of authorized third-party payment sites and fees.

A person wearing a white shirt is using a laptop while holding a credit card in their hand

Penalty for Not Paying Quarterly Taxes (Don’t Risk It)

So what happens if you forget or avoid paying? You could be assessed a penalty for not paying or for underpaying quarterly taxes.

You can avoid the penalty if you:

  • Owe less than $1,000 in taxes for the year

  • Pay at least 90% of this year’s tax or 100% of last year’s tax (110% if your income is over $150,000)

The penalty is essentially interest on what you should have paid and is calculated based on how much you underpaid and how late your payments were. 

Stay on the IRS’s Good Side By Staying Organized

Quarterly taxes aren’t the most glamorous part of your business journey. But keeping up with them saves you a world of stress (and money) come tax season.

Here’s a quick checklist to stay organized:

  • Track your income and expenses monthly

  • Use accounting software (or at least a detailed spreadsheet)

  • Set quarterly reminders on your phone

  • Bookmark IRS Form 1040-ES and IRS Direct Pay

And don’t be afraid to talk to a tax professional. Even a one-time consultation can help you set up systems that make life easier. 

Keep Calm and Pay Quarterly 

If you’re a first-time founder or solo entrepreneur, quarterly taxes might feel overwhelming, but they don’t have to be. Stay organized, plan ahead, and know the key dates and rules. You’ve already taken the bold step of starting a business; this is just one more skill you’re adding to your toolkit.

Disclaimer

Bizee and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting professionals.

Resources

IRS, Direct Pay with bank account - Link 

IRS, EFTPS - Link 

IRS2Go App - Link

IRS, Pay your taxes by debit or credit card or digital wallet - Link

IRS, Underpayment of estimated tax by individuals penalty - Link

IRS, Pay as you go, so you won't owe: A guide to withholding, estimated taxes and ways to avoid the estimated tax penalty - Link

Key Takeaways


• Self-employed individuals must pay estimated taxes quarterly if they expect to owe $1,000 or more annually.
• Quarterly tax deadlines are April 15, June 15, September 15, and January 15 of the following year.
• Estimated taxes cover both income tax and self-employment tax, which includes Social Security and Medicare.
• To calculate quarterly taxes, estimate annual income, subtract expenses, apply tax rates, and divide by four.
• IRS Form 1040-ES or apps like QuickBooks and Keeper can help automate your estimated tax calculations.
• IRS Direct Pay is the easiest way to pay online directly from your bank account.
• EFTPS allows recurring payments and is great for staying ahead of deadlines but requires account setup by mail.
• Missing or underpaying quarterly taxes may result in penalties calculated as interest on unpaid amounts.
• You can avoid penalties by paying 90% of this year’s taxes or 100% of last year’s taxes (110% for higher earners).
• Staying organized with software, reminders, and professional advice can help you avoid tax season chaos.

Bryanna Fissori, J.D.
Bryanna Fissori, J.D.

Bryanna is a legal writer with nearly two decades of content writing and research experience. She is also a professional boxer and MMA fighter who trains and coaches in Denver, Colorado. Bryanna was born and raised on a dairy farm in Northern California but spent many of her adult years living on the island of Oahu. She also holds a bachelor’s degree in Agriculture Business.

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Theresa Johnson, CPA

Theresa (Terry) Johnson, CPA, is an independent writer and editor with more than 20 years’ experience in public and private accounting, tax compliance, and strategic tax planning for individuals and businesses. Her diverse background also encompasses roles in education, business management, government, nonprofits, and retail.Terri is passionate about teaching individuals and small business owners the crucial aspects of small business ownership, taxation, and financial literacy. She owns and operates Simply Stated Finances, a company that offers one-on-one coaching and group sessions on various topics related to finance and accounting. She empowers her clients to take charge of their finances and achieve their personal and professional goals.

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