Who Needs to Pay Quarterly Taxes?

According to the IRS, you should pay estimated taxes if you:

• Expect to owe $1,000 or more in federal income tax after deductions and credits.
• Are self-employed, own a pass-through entity (LLC, S-Corp, partnership), or earn non-W-2 income.
• Have untaxed income from freelance work, rentals, investments, or side gigs.

This applies to:

• Freelancers & consultants
• LLC members & S-Corp owners
• Real estate investors
• Gig workers (Uber, DoorDash, Etsy sellers)
• Medical and legal professionals

(LSI: estimated taxes, self-employment tax, IRS Form 1040-ES, quarterly tax rules for business owners)

Texas Has No State Income Tax, But You Still Owe Federal

Texas doesn’t charge state personal income tax. However, you still owe federal income tax, self-employment tax (Social Security + Medicare = 15.3%), and federal quarterly estimated payments. If you run S-Corp payroll, you may also owe withholding and payroll taxes.

Quarterly Tax Due Dates (2025 Calendar)

Need help staying compliant? Explore our Tax Preparation Services.

How to Calculate Your Quarterly Tax Payments

3 Simple Methods

• Safe Harbor Method (Most Common): Pay 100% of last year’s total tax, or 110% if AGI > $150,000.
• Actual Income Estimate: Estimate current-year income, subtract deductions, apply IRS brackets. See Form 1040-ES instructions.
• CPA-Reviewed Estimate (Recommended): Let your CPA update payments quarterly based on fresh books.

Don’t Forget These Key Tax Elements

• Self-employment tax (15.3%) on net business income.
• Your income tax bracket (10–37%).
• Additional Medicare Tax if income exceeds $200K (single).
• Qualified Business Income (QBI) deduction if applicable.

To keep estimates accurate year-round, maintain clean books with our Bookkeeping Services and deeper planning via Small Business Accounting.

How to Pay Quarterly Taxes

Online Methods

• IRS Direct Pay — no account required.
• EFTPS (Electronic Federal Tax Payment System) — best for businesses.
• Paper check or money order with Form 1040-ES voucher.

Software + Automation Tools

• QuickBooks Self-Employed
• Gusto (for S-Corp payroll)
• Tax planner tools from your CPA

Let Abbas CPA automate your payments and avoid surprises — talk to us.

What Happens If You Don’t Pay Estimated Taxes?

• Underpayment penalties based on how much and how late.
• Interest on unpaid amounts.
• Late-filing fees if you also miss return deadlines.

According to the IRS, over 10 million taxpayers paid an underpayment penalty in 2023. Even if your income is irregular, pay something each quarter—the IRS prefers steady estimated payments.

Common Mistakes to Avoid

• Waiting until year-end to pay taxes.
• Not tracking income and deductions monthly.
• Using a personal account for business expenses.
• Assuming “no Texas income tax” means “no taxes at all.”
• Missing quarterly deadlines and hoping to catch up in April.

Need entity or payroll setup? We can help.

How Abbas CPA Supports You

• Calculate accurate quarterly payments.
• Track deductions and categorize expenses.
• File IRS forms (1040-ES, 941, 1120-S, etc.).
• Automate payment schedules.
• Keep you compliant year-round with CPA oversight.

Final Thoughts – Stay Ahead of the IRS with Smart Planning

• Break your bill into four manageable payments.
• Track income and expenses monthly.
• Avoid penalties and interest.
• Work with a Houston CPA who understands your business.