Quarterly Estimates, Simplified for Freelancers
A common-sense system that stops the April surprise without over-paying the IRS all year.
If you're self-employed, freelancing, driving rideshare, or running a side business, the IRS wants its money four times a year — not once. Miss those payments and you'll owe not just the tax but an underpayment penalty on top. Here's the simplest system we've found that keeps our clients compliant without over-paying all year.
The four dates, memorized
- April 15 — Q1 (Jan–Mar income)
- June 15 — Q2 (Apr–May income; yes, only two months)
- September 15 — Q3 (Jun–Aug income)
- January 15 — Q4 (Sep–Dec income of the previous year)
The safe-harbor rule that saves you from math
You will not owe an underpayment penalty if you pay in at least 100% of last year's total tax (110% if last year's AGI was over $150,000), spread evenly across the four due dates. Take last year's total federal tax, divide by four, and set up automatic payments through IRS Direct Pay. Done.
This is the single easiest way to eliminate April surprise for anyone whose income is roughly stable year over year.
The percentage system for irregular income
If your income swings — a big project one quarter, nothing the next — safe harbor works, but you can also just set aside a percentage of every deposit. For most freelancers netting between $50K and $150K, we recommend:
- 25%–30% of gross deposits into a separate "tax" savings account.
- Pay the IRS from that account on the four due dates.
- Whatever's left after April 15 is a bonus — or a cushion for next quarter.
Ohio and city estimates count too
Ohio wants quarterly estimates (IT 1040ES) on the same schedule if you'll owe more than $500 for the year. Cincinnati and RITA cities want their own quarterly payments if you're a sole proprietor or single-member LLC. We usually roll a 4%–5% add-on into the same tax savings account to cover both.
If you want us to run the numbers
Every new freelance client gets a personalized quarterly plan on day one — federal, Ohio and city — with the exact dollar amount to send each quarter. If that sounds better than guessing, come in for a free consultation.
