First year running my cleaning business. Somebody told me I'm supposed to pay taxes every quarter, not just in April. Is that real, and how much are we talking?
Numbers shared: About $48,000 in sales this year, about $9,000 on supplies, gas and a part-time helper
It's real. Nobody withholds tax from your business, so the IRS expects you to pay as you go. On these numbers that's about $2,547.63 every quarter.
Your business is your payroll department now
On a W-2 job, tax comes out of every check. When you run your own business nobody does that for you, so the IRS asks for estimated payments four times a year instead of one big bill in April.
Two taxes go in that payment. Self-employment tax is Social Security and Medicare, 15.3% on most of your profit. Income tax is on top; we used a 12% set-aside as a placeholder because your real rate depends on your whole year.
Skip the quarterly payments and you can owe a penalty plus the whole year at once. That April surprise catches a lot of first-year businesses off guard.
Tax starts from profit ($39,000), not sales. The two tax lines split four ways is about $2,547.63 a quarter, and what's left works out to about $2,400.79 a month for you.
Fifteen minutes. Keep your numbers on your phone; we don't need to see them.
- Look up this year's estimated tax due dates on IRS.gov (search Form 1040-ES).
- Put the next one in your calendar with a reminder a week before.
- Pick a separate spot for it, like a savings account you already have, and move a slice of every deposit there, so the quarterly payment is already sitting there.
Get it right the first year
A CPA or enrolled agent can set your real quarterly amount and tell you whether a first-year exception applies to you. Bring them these numbers.
How we did the math: Even sales across the year, sole proprietor. Federal only; no state tax, credits, QBI or half-SE-tax deduction. Income tax line is a savings placeholder, not a bill. Penalty rules and safe-harbor exceptions not modeled.
✓ Reviewed by Censi · Example · Education only
This is education, not personalized financial, tax or legal advice. You make the call; for your exact situation, a licensed pro can confirm.