Income that is not already subject to taxes can trigger the need to make quarterly estimated tax payments, but only if you expect to owe at least $1,000. This income often includes self-employment income, rental income, side-hustle income, and alimony.

Think about it this way: if your employer isn’t withholding money from your paycheck for taxes, you’re responsible for covering your tax. If you expect to owe $1,000 or more in taxes this year, the IRS expects you to make quarterly estimated tax payments. If you don’t, you may end up with penalties and interest from the IRS.

Reducing tax stress when you’re a contractor or self-employed starts with accurately calculating quarterly estimated tax payments and making them on time. Luckily, your local Tax Pro is always here to help you get it right. Book your appointment today.

Sharon Brucker, CPA Senior Tax Research Analyst Published on: August 08, 2025
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*This content is for general informational purposes only. It is not intended to be comprehensive and should not be construed as professional tax or financial advice for any specific individual tax situation. Taxpayers should always consult a qualified professional for individual guidance. This information constitutes a solicitation under the Treasury Department's Circular 230. Most offices are independently owned and operated.