Quarterly Tax Safe Harbor Estimator

How It Works

Calculates required quarterly estimated federal income tax payments under IRS Form 1040-ES guidelines for freelancers, contractors, and small business owners.

• Self-Employment Tax (SECA): Levies 15.3% (12.4% Social Security and 2.9% Medicare) on 92.35% of net business profits, with an above-the-line 50% deduction on adjusted gross income.
• IRS Safe Harbor Protection: Protects taxpayers from underpayment penalties if they pay at least 90% of their current year tax liability OR 100% of their prior year total tax (110% if prior year adjusted gross income exceeded $150,000).
• Quarterly Due Dates: IRS estimated taxes are due in four equal installments: April 15, June 16, September 15, and January 15.
• W-2 Withholding Offset: Any taxes withheld from W-2 employment count toward your annual requirement and are subtracted before computing quarterly amounts.