Quarterly Estimated Taxes — What They Are and How to Pay Them

Why self-employed artists pay taxes four times a year, the exact IRS deadlines, how to estimate what you owe, and how to actually make the payment.

The Tax System Expects You to Pay As You Earn

Regular employees pay taxes every paycheck. The employer withholds the money before it ever lands in the employee's bank account. As a self-employed artist, there's no employer doing that for you. Instead, the IRS expects you to estimate your annual tax liability and pay it in four installments throughout the year.

These are called estimated quarterly taxes. If you skip them and pay everything at once in April, you'll likely owe a penalty on top of your regular tax bill.

The trigger is simple: if you expect to owe $1,000 or more in federal tax for the year, the IRS requires estimated payments. Nearly every artist earning real money from music crosses that line.

The Four Deadlines

The IRS sets four payment deadlines each year. Note that "quarterly" is slightly misleading, because the periods aren't equal:

| Payment Period | Deadline |

|---|---|

| January 1 – March 31 | April 15 |

| April 1 – May 31 | June 15 |

| June 1 – August 31 | September 15 |

| September 1 – December 31 | January 15 (following year) |

If any deadline falls on a weekend or federal holiday, it shifts to the next business day.

Mark these dates in your calendar at the start of every year.

How to Estimate What You Owe

The IRS gives you two options for calculating quarterly payments, and either one protects you from the underpayment penalty:

Option 1: Pay 100% of last year's tax bill, divided by four.

If you owed $4,000 in taxes last year, pay $1,000 per quarter. This is the safe harbor method. Even if you earn way more this year, you won't be penalized.

Option 2: Estimate based on current year income.

If your income this year is significantly lower than last year, you might choose to estimate quarterly based on what you're actually earning. This can reduce your payments, but if you underestimate, you'll owe at filing time plus potentially a small penalty.

A simple formula for estimating:

Project your net income for the year (income minus business expenses)
Multiply by 15.3% for self-employment tax
Add your estimated federal income tax (use IRS tax brackets to estimate)
Divide by 4 for your quarterly payment amount

How to Actually Make the Payment

The easiest method is IRS Direct Pay at IRS.gov/DirectPay. You can pay directly from your bank account with no fees, no account required, and confirmation immediately.

Steps:

Go to IRS.gov/DirectPay
Select "Estimated Tax" as the reason for payment
Select the tax year and quarter you're paying for
Enter your bank account information
Submit

Keep the confirmation number from every payment. You'll need it if there's ever a discrepancy.

You can also pay by check made out to "United States Treasury," mailed with a voucher from IRS Form 1040-ES.

What Happens If You Miss a Payment

The IRS charges a small underpayment penalty, typically around 3–5% of what you should have paid, calculated on a per-day basis from the due date. It's not catastrophic, but it's avoidable.

More importantly, getting behind on estimated taxes means facing a larger lump sum in April that you may not have the cash for. Paying quarterly forces the discipline of setting money aside as you earn it.

The Bottom Line

Quarterly estimated taxes are not complicated. They're a calendar discipline. Set four reminders per year, keep a savings account specifically for taxes, and transfer 25–30% of every payout into it immediately. When the deadline comes, you'll have the money ready.

Key Takeaways

Estimated payments are required once you expect to owe $1,000 or more in federal tax for the year
Quarterly tax deadlines are April 15, June 15, September 15, and January 15
Paying 100% of last year's tax bill in four equal installments protects you from penalties
Pay online for free at IRS.gov/DirectPay, no account required
Missing payments results in a small penalty, but the bigger risk is not having cash in April
A separate savings account for taxes makes quarterly payments automatic and painless

Glossary

Estimated Quarterly Taxes: Advance tax payments made four times per year by self-employed people who don't have taxes withheld
Safe Harbor: Paying at least 100% of last year's tax liability to avoid underpayment penalties
Underpayment Penalty: A small fee charged by the IRS when you don't pay enough tax throughout the year
Form 1040-ES: The IRS form used to calculate and submit estimated quarterly tax payments