Quarterly Estimated Taxes: A Simple Guide for DFW Freelancers and Business Owners

Here's the deal: if you're self-employed, freelancing, or running a business in DFW, the IRS expects you to pay taxes throughout the year—not just in April. Miss these payments, and you'll get hit with penalties.

The short answer? If you expect to owe $1,000+ in taxes, you probably need to make quarterly payments. Let me break down exactly how this works.

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Who Needs to Pay Quarterly Taxes?

You likely need to make estimated payments if:

• You're self-employed or a freelancer
• You own a business (LLC, S-Corp, sole proprietor)
• You have significant investment income
• You're a 1099 contractor
• You have rental income

The rule: If you expect to owe $1,000 or more in federal taxes after subtracting withholding and credits, you should be paying quarterly.

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The Four Due Dates (Mark Your Calendar)

Quarterly taxes aren't actually quarterly—the IRS has their own schedule:

• Q1: April 15, 2026
• Q2: June 15, 2026
• Q3: September 15, 2026
• Q4: January 15, 2027

Heads up: If a due date falls on a weekend or holiday, it moves to the next business day. But don't cut it close—I've seen too many DFW business owners forget and get hit with penalties.

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How Much Should You Pay?

This is where most people get confused. You have two options to avoid penalties:

Option 1: The Safe Harbor (Easiest)

Pay 100% of last year's tax liability, divided into four payments.

If your AGI was over $150,000 last year, bump that to 110%.

Example: You owed $20,000 last year. Pay $5,000 per quarter, and you're safe from penalties—even if you owe more in April.

Option 2: Pay As You Go (More Accurate)

Pay 90% of your current year's liability as you earn it.

This works better if your income varies a lot or if you're earning significantly more or less than last year.

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The Real Math: What This Looks Like

Let's say you're a consultant in Richardson earning $120,000 in self-employment income:

Self-employment tax: ~$17,000 Federal income tax: ~$15,000 (depends on deductions, filing status) Total estimated liability: ~$32,000

Quarterly payment: $8,000

That's $8,000 four times a year. Sounds like a lot? It is. But it's better than writing one $32,000 check in April (plus penalties).

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What Happens If You Don't Pay?

The IRS charges an underpayment penalty—basically interest on what you should have paid.

The penalty rate changes quarterly (it's tied to federal interest rates). In 2026, expect around 8% annually.

Example: If you underpaid by $10,000 for the year, you're looking at roughly $800 in penalties. That's money you could've kept.

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How to Actually Make the Payments

You've got options:

IRS Direct Pay (Free)

Go to irs.gov/payments. Pay directly from your bank account. No fees.

EFTPS (Free)

The Electronic Federal Tax Payment System. Takes a few days to set up, but useful if you'll be making regular payments.

Credit/Debit Card

Works, but you'll pay processing fees (1.87%-1.99% for credit cards). Usually not worth it.

Mail a Check

Old school, but it works. Use Form 1040-ES vouchers.

My recommendation: Set up IRS Direct Pay. Takes 5 minutes, no fees, and you can schedule payments in advance.

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State Taxes: Texas Makes It Easy

Good news if you're in Plano, Richardson, Frisco, or anywhere in Texas: no state income tax means no state quarterly payments.

You'll still need to handle federal estimated taxes, but that's one less thing to worry about.

The catch: If you have business income, you may still owe Texas Franchise Tax. But most small businesses with revenue under $2.47 million owe nothing.

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Common Mistakes I See

1. Waiting Until Q4 to "Catch Up"

If you didn't pay Q1-Q3, paying everything in Q4 doesn't erase your penalties. The IRS charges interest from each missed deadline.

2. Forgetting Self-Employment Tax

Your quarterly payments need to cover both income tax AND self-employment tax (Social Security + Medicare). That's an extra 15.3% many people forget.

3. Using Last Year's Income When This Year Is Way Different

If your business doubled this year, last year's safe harbor might mean a huge bill in April. Adjust your estimates.

4. Not Separating the Money

This one's big. If you don't set aside tax money as you earn it, you won't have it when payments are due. I tell my DFW clients to transfer 25-30% of every payment to a separate "tax savings" account.

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A Simple System That Works

Here's what I recommend to my Plano and Richardson clients:

1. Open a separate savings account — call it "Tax Money"
2. Every time you get paid, transfer 25-30% to that account
3. On the 1st of the payment month, log into IRS Direct Pay and send the payment
4. Set calendar reminders two weeks before each due date

That's it. No stress, no scrambling, no penalties.

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The Bottom Line

Quarterly taxes aren't complicated—they're just unfamiliar. Once you set up a system, it takes 10 minutes per quarter.

If you're a freelancer or business owner in DFW and you're not sure what you should be paying, let's figure it out together. One planning session now saves a lot of stress (and penalties) later.

Unsure what you should be paying? Let's figure it out →

— Krystal Le, CPA

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LeCPA helps freelancers and small business owners across Plano, Richardson, Carrollton, Frisco, and Dallas stay ahead of their taxes.