The IRS requires you t o pay estimated taxes four times a year (unless you choose to pay up front for the entire year).
If you haven't paid your estimated taxesFirst, the bad news: The IRS will charge a daily penalty that starts on the day that your estimated taxes were due, and ends when they're paid in full.
Now, the good news: The penalty is quite low, only about six to eight percent. For example, let's say you owe $100 in taxes, but haven't paid it. You would only owe about $8 at the end of the year.
Here's the payment schedule for 2017:
- Q1 income received from January 1 to March 31: Estimated tax is due on April 18, 2017.
- Q2 income received from April 1 to May 31: Estimated tax is due on June 15, 2017.
- Q3 income received from June 1 to August 31: Estimated tax is due on September 15, 2017.
- Q4 income received from September 1 to December 31: Estimated tax is due on January 16, 2018.
How due dates work?
To see if you owe any penalties or to request a waiver, check out the IRS page Form 2210, Underpayment of Estimated Tax.
Note: Our product can help you estimate your taxes and organize your business income and expenses. However, we're not an official tax preparation service. Our estimate is not a bill from the IRS—we calculate your estimated taxes. We update the calculation as the year goes on and you enter more information.