Quarterly Taxes Explained (for Side Hustlers & Freelancers)
Got a side hustle or freelance gig? You’re technically your own boss—which means the IRS expects you to pay taxes throughout the year, not just in April. Enter: quarterly estimated taxes.
Here’s what you need to know:
💡 What Are Quarterly Taxes?
Instead of having taxes automatically withheld (like a W-2 job), freelancers and side hustlers must estimate and pay taxes every quarter. These payments cover:
Income tax
Self-employment tax (Social Security & Medicare)
📅 2025 Quarterly Tax Deadlines
Q1: April 15, 2025
Q2: June 16, 2025
Q3: September 15, 2025
Q4: January 15, 2026
Miss a deadline? You could owe penalties, even if you pay everything by April.
💰 How Much Should You Pay?
A common rule of thumb:
Set aside 25–30% of your net income (after expenses) for taxes. Or use the IRS Form 1040-ES to calculate based on last year’s return.
📦 Track Income and Expenses
Keep good records of:
Invoices and payments received
Business expenses (equipment, software, mileage, etc.)
These lower your taxable income—and your tax bill!
✅ Pro Tip: Open a separate savings account just for taxes and set money aside with every payment. Consider using apps like QuickBooks, Keeper, or Bonsai to automate tracking.