How to Set Up Quarterly Estimated Tax Payments and Avoid Big Surprises at Tax Time

When it comes to taxes, many business owners and self-employed individuals make a common mistake: waiting until the end of the year to deal with them. If you’ve ever felt shocked by the amount you owed when filing your tax return, you’re not alone. The good news? There’s a simple way to avoid large tax bills and potential IRS penalties—quarterly estimated tax payments.

At Soriaga & Associates, LLC, we help business owners stay ahead of tax season by planning smarter. Here's how you can set up quarterly estimated payments and reduce what you owe when it’s time to file.

Why Quarterly Estimated Tax Payments Matter

The IRS expects taxes to be paid as income is earned—not just once a year. If you're self-employed, own a small business, or receive income that doesn’t have taxes automatically withheld (like dividends, interest, or rental income), you’re likely required to pay estimated taxes on a quarterly basis.

Failing to do this can result in:

• A large tax bill at the end of the year

• Underpayment penalties and interest

• Cash flow problems during tax season

  
  

Making regular estimated payments helps smooth out your cash flow and keeps you in compliance with IRS requirements.

How to Calculate Estimated Tax Payments

Estimated tax payments are based on your expected income, deductions, and credits for the year. Here’s how to calculate them:

1. Estimate your total income for the yearInclude all sources of income that are not subject to withholding.

2. Calculate your expected tax liabilityUse IRS Form 1040-ES or consult with your accountant to estimate how much federal tax you’ll owe, factoring in your business expenses, credits, and deductions.

3. Divide your estimated annual tax into four paymentsThe IRS due dates for quarterly payments are:

   • April 15

   • June 15

   • September 15

   • January 15 (of the following year)
     

Tip: You can avoid penalties if you pay at least 100% of your previous year’s tax (110% for higher earners), or 90% of your current year’s tax.

How to Set Up and Make Estimated Payments

There are several convenient ways to make quarterly estimated tax payments:

• Online through the IRS Direct Pay portal:irs.gov/payments/direct-pay

• Via the Electronic Federal Tax Payment System (EFTPS):A free and secure way to schedule payments in advance.

• By mail using vouchers from Form 1040-ES:Print and mail your payment with the appropriate voucher.

• Through your accounting software:Many platforms like QuickBooks allow you to automate payment reminders and even send payments directly.

Why Work with Us?

Setting up estimated tax payments doesn’t have to be stressful. When you partner with an experienced CPA firm like Soriaga & Associates, we help you:

• Accurately forecast your income and deductions

• Avoid overpaying or underpaying

• Stay compliant with both federal and state tax rules

• Schedule your payments on time

• Keep your cash flow stable throughout the year

We specialize in helping home health, hospice, and small business owners with accounting, payroll, and tax strategies that increase profitability and reduce headaches.

Let’s Make Tax Season Less Stressful

Quarterly estimated tax payments are one of the best ways to stay on top of your tax obligations and avoid last-minute surprises. With a proactive plan in place, you’ll have more control over your finances and peace of mind all year long.

📞 Ready to set up your estimated tax plan? Contact Soriaga & Associates, LLC today to get started.

📧 Email: christian@soriagacpa.com 📞 Phone: (630)-491-1268