How to Pay Quarterly Taxes Without Losing Your Mind

If you are a freelancer, creator, or anyone earning 1099 income, the IRS expects you to pay taxes as you go. That means quarterly estimated taxes. Skip them and you may end up with penalties, even if you pay the whole bill by April. The system feels confusing at first, but once you understand the rules and pick the right tools, it gets a lot easier.

Who Has to Pay

The IRS rule is simple. If you expect to owe $1,000 or more in federal taxes for the year, you are supposed to make quarterly estimated payments. These payments cover both your income tax and your self employment tax, which is 15.3% for Social Security and Medicare combined.

The 2025 deadlines are:

• April 15 for income earned in January through March
• June 16 for April and May
• September 15 for June through August
• January 15, 2026 for September through December

Jot those dates down. They come fast.

How to Calculate What You Owe

There are a couple of ways to figure out quarterly payments. Here are two of the more common methods:

Safe harbor method. Pay 100% of last year’s total tax bill (110% if your adjusted gross income was over $150,000). Do that in four equal chunks and you avoid penalties, even if your income is higher this year.

Projected income method. Estimate your actual income for the year and calculate taxes accordingly. This is more accurate but requires updating numbers as you go, which is tricky if your income is lumpy (i.e. September creator slump).

For most new freelancers, safe harbor is the easiest way to stay compliant. Once you have a clearer sense of your income patterns, projecting may save money. Beluga will be releasing automated withholdings soon, which will make projecting much easier!

Ways to Pay

You have a few options for actually sending the money in:

• IRS Direct Pay. Free, fast, and lets you pay directly from your bank account. You can schedule payments up to a year in advance and get confirmation numbers for your records.
• EFTPS (Electronic Federal Tax Payment System). A free government system that takes about a week to set up (not joking). Once you have an account, you can schedule automatic payments and track your history. Great for people who like structure.
• Credit or Debit Card. Convenient, but third party processors charge around 1.9% in fees. That adds up if you are paying thousands.

Most freelancers stick with IRS Direct Pay or EFTPS.

Apps and Software that Make it Easier

Managing quarterly taxes is less about writing checks and more about staying organized all year. Here are some of the tools people use:

• Keeper Tax ($399/year). Tracks expenses automatically, scans receipts, and calculates quarterly payments.
• FlyFin ($36/month). Combines expense tracking with CPA support.
• QuickBooks Self Employed ($99/month). Solid bookkeeping with built in quarterly estimates.
• Hurdlr ($10/month). Tracks mileage, expenses, and income in real time.
• Bonsai Tax ($21/month). Focused on freelancers with automatic deductions and quarterly tax help.
• ADP MyTax (Free). Automates payments directly to the IRS on due dates.

And then there is Beluga. Unlike the others, Beluga does not just estimate a round percentage. It connects your accounts, tracks your income and expenses, and can withholds taxes automatically so you are setting aside the right amount as you go. That means no guessing if you saved too much or too little, and no scrambling to cover a payment when the deadline hits. For 1099 workers, it is as close as you can get to having a W-2 style payroll system without the employer.

Best Practices

• Open a tax savings account. Move 25% to 30% of each payment you receive into that account. When tax day comes, the money is there.
• Set reminders. Apps send notifications, but it is smart to also mark your calendar. The IRS does not do second chances.
• Keep detailed records. Receipts, mileage logs, invoices, and bank statements all count. Apps help, but a simple system works too.
• Use safe harbor if unsure. If your income is unpredictable, paying last year’s tax bill in equal parts avoids penalties.

Bottom Line

Quarterly taxes are not fun, but they are not impossible. You pay four times a year, either based on last year’s numbers or this year’s estimates. You can send money through IRS Direct Pay, EFTPS, or an app that automates it. The real key is building a routine: set aside money as you earn, track expenses, and use tools that match your needs.

Do that, and tax season goes from panic mode to just another date on the calendar.

Keep on Creating!

— The Beluga Team