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Quarterly Estimated Taxes: Deadlines, Safe Harbors and Common Mistakes
Self-employed? A landlord? Earning investment income? Estimated payments are how you avoid an underpayment penalty — and the safe harbor rules are simpler than they look.
If income arrives without withholding — self-employment, rental property, dividends, capital gains — the IRS expects you to pay in four installments during the year rather than in one lump sum at filing.
The deadlines
- Q1: April 15
- Q2: June 15
- Q3: September 15
- Q4: January 15 of the following year
The safe harbor
You generally avoid an underpayment penalty if you pay at least 90% of the current year's tax or 100% of last year's tax (110% for higher-income taxpayers). Paying based on last year's liability is the simplest approach when this year's income is unpredictable.
Common mistakes
- Forgetting the state installment — New York has its own schedule.
- Skipping Q4 because the return is due soon afterward. The penalty still applies.
- Applying a payment to the wrong tax year in the IRS portal.
Questions about your own situation?
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