top of page

Quarterly Estimated Taxes

Jan 13

2 min read




VOLUME 17 | ISSUE 1


I think I remember Snoopy writing a letter to the IRS, asking to be removed from their list. I wonder how that worked out for him.


Call it an occupational hazard, but the beginning of a new year always reminds me of tax deadlines.


Since the US has a pay-as-you-go system, many folks have taxes withheld and paid from their regular cadence of paychecks. If your income is more dynamic, however, it is a good idea to make sure you understand estimated payments. If you are self-employed, work as an independent contractor, or have lumpy income from a side hustle, you probably see where I’m going with this. To make sure you pay not only what but when you owe, the IRS has a couple of guidelines. These don’t protect you from owing taxes (sorry Snoopy) but help minimize possible penalties and interest owed from underpayment.


Since you can’t predict the future, the best way to ensure that you pay what you owe is to pay at least 100% of what you paid the previous year (110% for AGI of $150k or above), unless you believe you will earn significantly less this year. If you think you are going to make less but have a good idea of the final number, try to aim for 90% of what you think this year’s tax burden will be. You can then split your payments into four installments.


These installment payments must be paid on:

  • April 15

  • June 15

  • September 15

  • January 15 (for the last quarter of the previous year).

 

When the 15th falls on a holiday or weekend, the payment date becomes the next business day. The good news is Uncle Sam makes it easy to pay online or by check. As with all things though, there are nuances and individual circumstances to consider. That’s where we come in -

If you have any tax anxiety, foresee a career change (including retirement), a significant income swing, or self-employment on the horizon, give your Armor team a call. We’d love to help you plan around it.  

Armor Investment Advisors, LLC website logo, white

4101 Lake Boone Trail, Suite 208
Raleigh, NC 27607

919.571.4382

  • LinkedIn

News & Insights

Sign up for The Aegis, our informative quarterly newsletter.

Thanks for subscribing to The Aegis!

© 2025 by Armor Investment Advisors, LLC. Designed by VE Websites  |  Privacy Policy  |  Form CRS  |  ADV Part 2

bottom of page