How to pay quarterly estimated taxes (IRS and California)
If you've only had a job before, you may never have paid this: your employer took federal and California tax out of each paycheck and sent it in for you (that's called withholding). As a business owner, no one does that for your business profit, so you prepay your tax during the year yourself. There are two separate payments: one to the IRS for federal tax (income tax, plus self-employment tax if you owe it), and one to the Franchise Tax Board (FTB) for California income tax. The IRS has four due dates a year, generally in equal parts. California has three (no September payment), and they aren't equal: 30% of the total you need to prepay for the year in April, 40% in June, and 30% in January. Other timing is allowed: you can prepay the whole year's total early in one payment. You can also wait and pay everything when you file, but if you were required to make these payments, the IRS and California charge an underpayment penalty, which works like interest on each payment that was late or too small.
- Agency
- IRS + CA Franchise Tax Board
- Who has to do it
- These are two separate rules. You generally must pay the IRS if you expect to owe at least $1,000 in federal tax for the year, and California if you expect to owe at least $500 in California tax ($250 if married filing separately), after withholding and credits. Not sure? Ask a tax professional. Already scheduled these payments in your tax software or with a tax professional? Check before paying, so you don't pay twice.
- If it's late
- Underpayment penalty, calculated like interest on what you should have paid.
Step by step
Pay the IRS (federal tax)
Click Pay through Direct Pay. Apply Payment To: Form 1040 - Income Tax. Reason: Estimated Tax. Tax year: the year you're paying for. You'll verify your identity with details from a past return.
Pay California (state income tax)
This is a separate payment to FTB. Click Bank account, then Use Web Pay personal, and log in with your Social Security number and last name. Payment type: Estimated Tax Payment (Form 540-ES). Tax year: the year you're paying for. California's payments aren't equal: 30% of the total you need to prepay for the year in April, 40% in June, and 30% in January.
Dulybook is a tracking and guidance tool, not tax or legal advice. Rules, fees, and websites change, so always confirm on the official agency page before you file or pay. Dulybook doesn't file anything for you. Terms of Service