If you earn 1099 income, the IRS expects you to pay taxes four times per year — not just in April. Here is exactly when, how much, and how to never miss a payment again.
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As a 1099 contractor, you are required to make estimated tax payments four times per year. These are not optional — the IRS charges an underpayment penalty on any quarter where you did not pay enough. For 2026, the due dates are:
(Deadlines that fall on a weekend or federal holiday shift to the next business day.)
Miss a deadline or significantly underpay, and the IRS charges an underpayment penalty — the rate is set by the IRS each quarter (check IRS.gov for the current rate). On a $10,000 underpayment at a 7% annual rate, that is $700 in avoidable fees.
Most tax professionals recommend that 1099 freelancers set aside 25–30% of every payment received as an estimated tax reserve. This covers two obligations: self-employment tax and federal income tax.
Self-employment tax funds Social Security and Medicare. The headline rate is 15.3%, but the IRS does not apply it to 100% of your net self-employment income — it applies to 92.35% of your net income per Schedule SE. For planning purposes, a 30% set-aside on gross payments is a widely used and defensible general estimate for freelancers with moderate income.
General estimate — your actual rate depends on total income, filing status, deductions, and state taxes. Consult a tax professional.
Every time a client pays an invoice in SoloDesq, the app calculates 30% of that payment and adds it to your estimated tax set-aside target (opt-in). The estimate updates in real time. When a quarterly deadline arrives, you already know the number. The set-aside is a calculated estimate displayed in-app — SoloDesq never holds or moves your money.
Join freelancers who track their quarterly taxes with SoloDesq. Start with a 30-day free trial.