The short answer is: Probably, because paying quarterly taxes (or “estimated payments”) is a good idea if you’re making a profit in your business. If your income is higher than your business deductions, then you’re making a profit.
When you’re an independent contractor, you’re responsible for paying taxes on your own. The IRS will expect you to make quarterly tax payments if you expect to owe $1,000 or more in taxes on your income in a given year. The IRS requirements on quarterly taxes can be found here.
That being said, it’s possible that you’re already paying enough in taxes during the year. For example, if you have a full-time or part-time job where your taxes are already being withheld for you, and you tend to get a tax refund, then you may not need to pay quarterly taxes.
You can read more about how to calculate and pay quarterly taxes here!
- First-quarter payments are due April 15 on income earned from January 1st – March 31st
- Second-quarter payments are due June 15 on income earned from April 1st – May 31st
- Third-quarter payments are due September 15 on income earned from June 1st – August 31st
- Fourth-quarter payments are due January 15 on income earned earned September 1st – December 31st