Don't Forget: Quarterly Estimated Tax Payments Are Due on September 15

We're already one week into September. You may be busy planning what upcoming pumpkin patches to visit or other exciting fall events you plan to enjoy, but there's another looming event to consider. Sept. 15 is the next quarterly estimated tax payment deadline. If this deadline applies to you, now is the time to schedule your estimated tax payments so you don't forget.

Taxes must be paid as you earn money

According to the IRS, federal taxes must be paid as you earn income throughout the year. For regular W-2 employees, taxes are deducted from workers' paychecks. If enough income tax is withheld, these workers don't need to worry about sending a tax payment themselves.

But that's not the case for every worker -- especially those who freelance or are self-employed. Additionally, some salaried workers may not have enough income tax withheld from their paychecks, so they may be responsible for making additional tax payments throughout the year.

If either of these situations apply to you, it's best to make quarterly estimated tax payments. Doing this can help split your total tax liability into more manageable quarterly chunks. But it can also help you avoid being charged a penalty.

The IRS notes that taxpayers who expect to owe tax of $1,000 or more when they file their federal tax return are generally expected to make estimated tax payments throughout the year. That means for many taxpayers, it's time to submit their Q3 estimated tax payments.

Here's when estimated tax payments are due

Below are the due dates for federal estimated tax payments by quarter:

Many taxpayers also owe state and federal incomes taxes. If this is true for you, don't forget to pay your estimated state and local tax payments on time, too!

Don't delay estimated tax payments -- it could cost you

Since I'm a freelancer, I'm responsible for making estimated tax payments. I scheduled my Q3 federal, state, and local estimated tax payments yesterday afternoon. I usually aim to schedule my payments at least a week in advance so I don't forget.

If you're responsible for making estimated payments, you may want to plan to schedule them a few days before the next deadline. Why? It could cost you money if you forget and end up not paying enough in taxes, which could negatively impact your checking account balance.

When taxpayers don't pay enough taxes throughout the year through withholding or by making estimated tax payments, they are charged a penalty for underpayment of estimated tax. Penalties may also be charged if estimated tax payments are late.

Staying on top of your quarterly estimated payments can be a win for your personal finances. If you're forgetful, I recommend making a note in your calendar a few days before each quarterly due date. Another option is to set up payment reminders on your phone.

If you're a self-employed freelancer or business owner, your tax situation is likely much different than the average salaried worker. Make sure you understand what tax responsibilities you have before April rolls around. For additional tax tips, check out our free tax resources.