Quarterly Taxes for 1099 Workers

Why 1099 workers pay quarterly

The U.S. tax system operates on a pay-as-you-go basis. Employees satisfy this through withholding on every paycheck. 1099 workers have no employer doing that — so the IRS requires them to make quarterly estimated payments to cover their expected tax liability throughout the year.

If you expect to owe $1,000 or more in federal taxes after withholding and credits, you're generally required to pay quarterly. Missing payments or underpaying results in an IRS underpayment penalty.

The 2026 quarterly due dates

How much to pay each quarter

Use the safe harbor method: pay 100% of last year's total tax liability divided by four. (If your prior year AGI exceeded $150,000, pay 110% instead.) This protects you from underpayment penalties regardless of what you actually owe this year.

Alternatively, estimate your current year income and pay 90% of your expected tax across four quarters. Our 1099 tax estimator calculates both methods and shows you which results in a lower payment.

How to actually pay

IRS Direct Pay (irs.gov/payments) — free, no registration, takes 5 minutes. Best for occasional payments.

EFTPS (eftps.gov) — free, requires enrollment, but lets you schedule all four payments at the start of the year. Best for set-and-forget quarterly payments.

Both methods withdraw directly from your bank account and provide immediate confirmation. Never mail a check if you can avoid it.

The 25–30% savings rule

The simplest approach for variable income: set aside 25–30% of every 1099 payment into a dedicated savings account the day it arrives. When a quarterly deadline comes, use your estimator to calculate the precise amount — any excess stays as your tax buffer.