12/29/2025
If you are a contract worker, freelancer, or self-employed and don’t have an employer to withhold your taxes, just like everyone else, you still must pay your taxes.
It’s your responsibility to know what they are, when to pay them, and how much to pay. Because of this, you may need to pay quarterly taxes.
According to the IRS, you must pay an estimated quarterly tax if you pass the following 2-part test:
1. You are expected to owe at least $1,000 in taxes on your income.
2. The amount of taxes you’ve withheld (tax withholding usually happens through payroll) and refundable credits will be less than the smaller of:
- 90% of your prior-year tax liability, or
- 100% of your tax liability two years prior.
Point two sounds confusing, which is why we can’t stress enough - consider working with a tax professional.
If you need more support or have more questions, schedule a call with us today!
