How to Calculate Quarterly Estimated Taxes

Learn who is required to file and how to estimate.

Any individual who is self-employed knows they are responsible for filing and paying Federal estimated quarterly taxes. This can be very different from the taxation that takes place while you are employed. First of all, the term 'estimated quarterly taxes' isn't exactly accurate. The Internal Revenue Service (IRS) publishes a schedule that jumps around a little. The first payment for a tax year is due April 15, the second payment is due June 15, the third payment is due October 15 and the last payment is due January 15 of the next year.

So the payment schedule is more like 31/2 months, 2 months, 4 months and 3 months in making up the Federal estimated quarterly tax payments. The intent, however, is each payment represents one quarter of what you will owe for the year.