Quarterly Estimated Taxes
Overview
Section titled “Overview”The Quarterly Taxes skill calculates estimated tax payments for self-employed individuals. It analyzes income, deductions, and self-employment tax to recommend quarterly payment amounts.
Tax Calculation
Section titled “Tax Calculation”Self-Employment Tax (2024-2025)
Section titled “Self-Employment Tax (2024-2025)”- Social Security: 12.4% on first $168,600 (2024) / $176,100 (2025)
- Medicare: 2.9% on all net earnings
- Additional Medicare: 0.9% on earnings over $200K (single) / $250K (married)
- Applied to 92.35% of net self-employment income
- Deduct 50% of SE tax from AGI
Income Tax Brackets (2024 Single)
Section titled “Income Tax Brackets (2024 Single)”| Rate | Income Range |
|---|---|
| 10% | $0 - $11,600 |
| 12% | $11,601 - $47,150 |
| 22% | $47,151 - $100,525 |
| 24% | $100,526 - $191,950 |
| 32% | $191,951 - $243,725 |
| 35% | $243,726 - $609,350 |
| 37% | $609,351+ |
Payment Schedule
Section titled “Payment Schedule”| Quarter | Period | Due Date |
|---|---|---|
| Q1 | Jan 1 - Mar 31 | April 15 |
| Q2 | Apr 1 - May 31 | June 15 |
| Q3 | Jun 1 - Aug 31 | September 15 |
| Q4 | Sep 1 - Dec 31 | January 15 (next year) |
Safe Harbor Rules
Section titled “Safe Harbor Rules”- Pay 100% of prior year tax liability, OR
- Pay 90% of current year tax liability
- If AGI > $150K: must pay 110% of prior year
Workflow
Section titled “Workflow”- Calculate income — Totals self-employment income for the current quarter and year-to-date
- Identify deductions — Finds business deductions that reduce taxable income
- Calculate taxes — Computes self-employment tax and estimated income tax
- Generate report — Produces year-to-date income, SE tax calculation, recommended quarterly payment, and next deadline
Important Notes
Section titled “Important Notes”- These are estimates — actual tax liability depends on many factors.
- State taxes are NOT included.
- Underpayment penalties apply if quarterly payments are insufficient.