Estimated taxes are due four times a year: April 15, June 15, September 15, and January 15. Missing a payment can trigger a penalty—like a late fee on your Netflix subscription, but far less forgiving.
Set a calendar reminder with a funny nickname. I call mine “Rent for the Government.” It makes the sting a little lighter.
Fun fact: The penalty for underpayment is roughly equivalent to the interest on a mid-tier credit card. So paying late is like saying, “I’d rather owe you 4% APR than pay you now.” The IRS doesn’t mind collecting interest.
What About State Taxes?
This article is about federal taxes, but don’t forget your state. Each state has its own estimated tax system, and they love sending letters to the wrong address. Check your state’s Department of Revenue website—and expect slightly more confusing instructions.
For example, California requires estimated payments on a separate form (540-ES). New York uses form IT-2105. It’s like every state speaks its own tax dialect.
