If you're a US freelancer, creator, or sole proprietor — or a Canadian self-employed individual — you may need quarterly estimated tax payments when withholding does not cover enough of your tax. Missing a required payment can lead to an underpayment charge and a larger filing-time bill.
ExpenseBot's Settings → Tax cash flow card shows estimated taxable business profit, a planning reserve, and the next US or Canadian payment date at a glance.
Quick rule of thumb
A common starting point for sole proprietors and freelancers is 30% of net business income:
| Component | Approximate share |
|---|---|
| Self-employment tax (SS + Medicare) | ~15.3% of net (up to the SS wage base) |
| Federal income tax | ~12–17% effective, depending on bracket |
| State / provincial income tax | Varies — add separately if applicable |
If you're in a high-tax state (CA, NY, OR) or province (QC, ON) you may need 35–40%. If your net is low and most of it falls under the standard deduction, 25% can be enough.
US deadlines (IRS Form 1040-ES)
| Quarter | Deadline |
|---|---|
| Q1 (Jan–Mar income) | April 15 |
| Q2 (Apr–May income) | June 15 |
| Q3 (Jun–Aug income) | September 15 |
| Q4 (Sep–Dec income) | January 15 of the following year |
Pay online at EFTPS.gov or IRS Direct Pay. Mail-in is also accepted with Form 1040-ES vouchers.
Canadian deadlines (CRA T1 instalments)
| Quarter | Deadline |
|---|---|
| Q1 | March 15 |
| Q2 | June 15 |
| Q3 | September 15 |
| Q4 | December 15 |
Pay through CRA My Account, online banking ("Federal — Tax Instalment"), or by mail with the personalized voucher CRA sends.
Quebec residents have separate provincial instalments (Revenu Québec) for QPP/QPIP — check Mon dossier.
What the Tax cash flow card does
The card and modal in Settings → Tax cash flow:
- 📊 Start with recorded business income and subtract deductions ExpenseBot can classify for the year
- 💰 Show a planning reserve, not a tax bill, at 25%, 30%, or 35%
- ✅ Track estimated-tax payments you've already made by entering the running total
- ⏰ Show the next standard quarterly payment date and how many days away it is (turns red when ≤ 14 days)
- 🌍 Country-aware — uses US dates for US-based users, CRA dates for Canada
Personal expenses, expenses omitted from reports, and amounts marked for tax review are not treated as current deductions. If some expense categories have not been tax-classified, ExpenseBot does not subtract them. The modal identifies that amount and intentionally gives a high-side reserve rather than risk telling you to save too little. Proactive banners and deadline emails wait until deduction coverage is sufficient.
What it does NOT do
- It does not file or pay your taxes — it's a planning estimate
- It does not include state / provincial income tax in the 30% rate
- It does not calculate withholding, credits, the US safe-harbor amount, or a CRA instalment notice
- It does not calculate corporate tax; incorporated owners should use a rate from their tax software or adviser
- It does not handle complex situations: spouse income, multiple businesses, large W-2 income alongside 1099, foreign tax credits, etc.
For anything beyond a sole-prop rough cut, use your tax software or speak with a tax professional.
Avoiding the underpayment penalty
The US safe harbor rule: you generally avoid a penalty if your prepayments total at least the smaller of:
- 90% of this year's tax, OR
- 100% of last year's tax (110% if last year's AGI was over $150K)
In the US, estimated payments generally become relevant when you expect to owe at least $1,000 after withholding and refundable credits. In Canada, CRA instalments are based on the individual's circumstances and notices; the date shown in ExpenseBot does not by itself mean a payment is required.
Official references: IRS 2026 Form 1040-ES, IRS Publication 505, and CRA instalment due dates.
Related
- S-Corp Election for Sole Props — if your net is consistently above ~$60K, you may save more than what quarterly cadence alone provides
- S-Corp for Content Creators — creator-specific S-Corp math (higher threshold, different split, entertainer-scrutiny angle)
- 1099-K Phantom Income — if your quarterly income runs through Patreon / OnlyFans / Twitch / Stripe, you're paying tax on the GROSS unless you deduct platform fees
- Canadian Tax Deadlines 2026 — full CRA calendar with all instalment + filing dates