Quarterly Taxes: A Complete Guide for Content Creators

Navigating the world of taxes can be a daunting task, especially for content creators who may be transitioning from a W2 job where your taxes were withheld to a world where you have to manage it all yourself.

That’s why we’re here to help. Quarterly taxes: a complete guide for content creators is designed to help creators like you demystify quarterly taxes and streamline the process.

What Are Quarterlies?

First, we need to talk about what quarterly taxes are. They are estimated tax payments you make to the IRS (and sometimes your state’s revenue department) four times a year. This typically applies to freelancers, independent contractors, and, yes, content creators just like you. Because you don’t have an employer taking taxes out of your paycheck and sending them in throughout the year, you need to make sure it happens. 

Who Needs to Pay Quarterly Taxes?

If you expect to owe $1,000 or more in taxes after subtracting any withholding and refundable credits, we recommend that you pay estimated taxes. 

When Are Quarterly Taxes Due? 

Quarterly tax payments are typically due on the following dates each year:

• April 15th for income earned from January 1st to March 31st
• June 15th for income earned from April 1st to May 31st
• September 15th for income earned from June 1st to August 31st
• January 15th of the following year for income earned from September 1st to December 31st

If a due date falls on a weekend or holiday, the payment is due the next business day. 

How Do You Calculate Quarterlies?

You can quickly estimate your quarterlies by estimating your total income for the year, subtracting your deductions and credits, and then figuring out how much you owe.

Here’s a step-by-step breakdown: 

1. Estimate your annual income. Start by estimating your total income for the year from all sources. This includes revenue from your content creation activities, as well as any other income streams you may have.
2. Subtract any deductions. Next, subtract any deductions you qualify for. If you’re not sure whether something is deductible, you can leave it out during these calculations so that you don’t accidentally pay too little in taxes. Once you’re filling out your tax forms, you can figure out your true deductions.
3. Figure out your taxable income. Your annual income minus your deductions is your taxable income.
4. Calculate what you might owe. Use the IRS tables or a tax calculator to see how much you’re likely to owe. If your state collects income tax, you may need to find their tax table, too.
5. Divide by 4. That is the estimated amount you should send in each quarter.
6. Check in before you send your payment. Because you’re estimating what you might owe, you may need to adjust your quarterly payments if you are earning more or less than you guessed at the beginning of the year.

How Do You Pay Quarterly Taxes? 

Once you’ve calculated your quarterly taxes, you have several options for making your federal payments:

Online: The IRS offers several online payment options, including Direct Pay, the Electronic Federal Tax Payment System (EFTPS), and credit/debit card payments.

By mail: You can mail a check or money order with Form 1040-ES to the IRS. Be sure to include your Social Security number and the tax year on your payment.

By phone: The IRS also accepts payments by phone through various service providers.

Your state may also have an online portal to make payments. Otherwise, you will likely have to send a check. Check with your state’s department of revenue for their guidelines.

How Can You Manage Your Quarterlies?

Good record-keeping is mission number one. This will help you estimate your taxes correctly, make changes when you need to, and provide documentation if you ever need it. Another important strategy is to set aside money as it comes in. We usually recommend that you save 25%-30% of your income to cover your taxes. 

What Mistakes Should I Avoid? 

Even seasoned content creators can make mistakes when it comes to quarterly taxes. Here are some common pitfalls to watch out for:

1. Underestimating your income. If you don’t correctly estimate your income, you may end up paying too little, which can result in penalties. The bigger issue, though, is that you may have a huge tax bill that is hard to pay on time.
2. Missing quarterly deadlines. If you forget to send a payment, send it in as soon as you remember. And use that calendar we mentioned earlier to keep yourself on track.
3. Overlooking deductions. If you don’t deduct legitimate business expenses, you may end up paying more in taxes than you need to. And we want you to keep the money you are entitled to.
4. Getting in over your head. If you don’t pay your taxes each quarter, you may have a big tax bill when you file. And that’s fine if you can pay it. But if you aren’t able to pay the whole thing right then, you may struggle to keep up with a payment plan plus pay quarterlies for the next year’s taxes. It can be a never-ending cycle where you never feel caught up with your tax liability.

Final Thoughts

Paying quarterly taxes is an essential part of being a content creator, but it doesn’t have to be overwhelming. By understanding the process, staying organized, and seeking help when you need it, you can manage your taxes with confidence and focus on what you do best — creating amazing content. Book a call to chat with somebody who understands your work!