What is Quarterly Estimated Tax? Definition, requirements, and how it applies to your business formation. Learn everything about quarterly estimated tax payments for LLCs and corporations.
# Quarterly Estimated Tax Payments
Quarterly estimated tax payments are prepayments of income tax and self-employment tax made four times per year by self-employed individuals and business owners who expect to owe $1,000 or more in federal taxes. The IRS imposes underpayment penalties if these payments are missed, regardless of the reason.
Due dates are April 15, June 15, September 15, and January 15. Payments can be calculated using the prior-year safe harbor (100% of last year's tax, or 110% if AGI exceeded $150,000) or the current-year method (90% of current year's expected tax).
Lovie's compliance calendar tracks quarterly estimated tax deadlines and integrates with your entity's tax classification to remind you before each payment is due.