How to Submit Quarterly Estimated Payments
If you expect to owe taxes outside of regular paycheck withholding, you may need to make quarterly estimated tax payments. These payments help you stay current with the IRS and state tax agencies and can reduce penalties at tax time.
Here’s a simple step-by-step guide to help you understand what to do.
1) Do You Need to Make Estimated Payments?
You typically need to make quarterly payments if:
You are self-employed or a business owner
You receive freelance or contract income (1099 income)
You have investment income, rental income, or other untaxed income
Your tax withholding is not enough to cover your total tax bill
If you expect to owe $1,000 or more when you file your return, estimated payments are usually required.
2) When Quarterly Payments Are Due
Estimated taxes are paid four times per year:
April 15 (for income earned Jan–Mar)
June 15 (for income earned Apr–May)
September 15 (for income earned Jun–Aug)
January 15 (for income earned Sep–Dec)
If a due date falls on a weekend or holiday, it moves to the next business day.
3) How Much Should You Pay?
A safe rule of thumb is to pay either:
90% of your current year tax, or
100% of your prior year tax liability (110% if your income is higher)
If you’re unsure, we can help estimate a reasonable quarterly amount based on your prior return and current-year income. The goal is not perfection—just a reasonable payment to minimize penalties.
4) How to Make Your Federal Estimated Payments
Pay Online (Recommended)
You can pay directly from your bank account using IRS Direct Pay.
Be sure to select “Estimated Tax Payment” as the reason for payment. Choose the correct tax year and quarter.
Note: The IRS is discouraging check payments, and we have seen some checks be returned. We strongly recommend paying online. In our experience, mail processing delays and check fraud have become more common, and checks provide no immediate confirmation that the payment was received.
5) How to Make State Estimated Payments
Most states require estimated tax payments if you owe state income tax.
For local clients:
Kansas: Pay through the Kansas Department of Revenue
Missouri: Pay through the Missouri Department of Revenue
For residents of other states, visit your state’s department of revenue website to find the official payment portal and filing instructions.
6) Don’t Forget Local Taxes (If Applicable)
If you live or work in Kansas City, Missouri, the city charges a 1% earnings tax. Most employees have the tax automatically withheld by their employer.
To confirm, look at your W-2:
Box 19: Local income tax withheld
Box 20: Locality name (often listed as Kansas City)
If Kansas City appears and tax was withheld, you’ve likely already paid it. If you still owe city tax, you can submit a payment through the Kansas City tax portal.
For other cities, search your city’s website for:
“YourCityName income tax” or “YourCityName earnings tax.” Many municipalities provide online payment portals.
Need Help?
If you’re unsure how much to pay each quarter, we can help estimate a reasonable amount based on:
Your prior-year tax return
Your current income
Any expected changes in withholding or deductions
A reasonable estimate is usually enough to stay compliant and avoid penalties. Email Lindsay at lbruch@infinitywp.com to request an updated estimate.