You're generally expected to pay quarterly taxes if you're self-employed.
If you get paid as a 1099er, then taxes aren't withheld from your pay, which means you're responsible for paying both your federal and state taxes (if you live in a state with state income taxes).
Who needs to pay quarterly taxes?
Here’s a general rule-of-thumb from the IRS for determining if you should be paying taxes quarterly:
Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.
What amount do you pay?
Quarterly taxes are estimated taxes.
You pay what you think you owe each quarter, and then you settle up with the IRS in your annual return, either by paying the rest of what you owe or by receiving a refund.
Catch will help you stay prepared for quarterly taxes, but it’s up to you to determine exactly what you owe the IRS each quarter. Here are two forms you can use to calculate and file quarterly taxes:
1040-ES: Use this worksheet for calculating exactly what you owe in quarterly taxes.
Schedule C: Input your 1099 income plus any related expenses. This total is then subject to self-employment taxes, federal income tax, and state income tax. The Schedule C isn’t required for paying quarterly taxes, but it’s helpful to have.
Keep in mind, even if you make estimated tax payments, you may still owe taxes when filing your return at the end of the year.
When do you pay?
Here are the quarterly tax deadlines for income earned per year:
IRS Due Date | Catch Withdrawal* | What's Due |
Apr 15 | Apr 10 | Q1 estimated tax (Jan-Mar) |
Jun 15 | Jun 10 | Q2 estimated tax (Apr-May) |
Sep 15 | Sep 12 | Q3 estimated tax (Jun-Aug) |
Jan 15 | Jan 10 | Q4 estimated tax (Sep-Dec) |
*If you're withdrawing from your Catch Money account to pay on your own, we recommend factoring in at least 3-5 business days for processing time.
How do you make a quarterly tax payment?
There are two ways to submit your tax payment:
Electronic: Payment must be submitted by 8pm ET the day before the due date. This can be done via a system called EFTPS.gov.
Physical Mail: Payment should be postmarked on or before the due date. First, print and fill out a 1040-ES form for the corresponding quarter (for example: September 15th would be the Q3 Voucher). Then write a check to the United States Treasury for the amount owed. Finally send it to the nearest IRS mail center.
What happens if you don’t pay?
If payments aren’t made quarterly when due, you may have to pay a penalty.
Neither Catch Financial nor its subsidiaries are tax advisors. All information is provided for educational purposes only. If you have tax questions, we recommend you reach out to a tax professional.