How to Pay Quarterly Taxes as a Content Creator (Without the Stress)

Brendan Phillips
Apr 21
6 min read

Nobody becomes a content creator because they love taxes. Yet here you are, Googling "quarterly taxes" at 11 PM because someone mentioned you might owe the IRS money four times a year instead of just once.

Take a breath. Quarterly taxes sound complicated, but once you understand the system, they're actually pretty straightforward. And getting them right can save you from nasty surprises (and penalties) come April.

Let's break down everything you need to know.

What Are Quarterly Taxes (And Why Do They Exist)?

When you have a regular job, your employer withholds taxes from every paycheck and sends them to the IRS. By the time April rolls around, you've already paid most of what you owe.

As a self-employed creator, nobody withholds anything. You get the full amount from YouTube, OnlyFans, brand deals, wherever. But the IRS still wants their money throughout the year—not just in one lump sum.

Enter quarterly estimated taxes: four payments spread across the year to keep you current with the IRS.

The quarterly due dates:

Q1: April 15 (for income earned Jan-Mar)
Q2: June 15 (for income earned Apr-May)
Q3: September 15 (for income earned Jun-Aug)
Q4: January 15 of the following year (for income earned Sep-Dec)

Yes, the quarters aren't actually equal. Q2 is only two months. The IRS is weird.

Do You Actually Need to Pay Quarterly Taxes?

Here's the rule: if you expect to owe $1,000 or more in federal taxes after subtracting withholding and credits, you're required to pay quarterly estimates.

For most creators earning more than about $10,000-$15,000 per year in self-employment income, the answer is yes.

What happens if you don't pay?

You won't go to jail. But you will owe penalties and interest when you file your annual return. The penalty is essentially interest on your unpaid taxes—currently around 8% annually.

Skip quarterly payments on $10,000 in taxes, and you might owe an extra $400-$800 in penalties. Not catastrophic, but easily avoidable.

The Safe Harbor Method: Your Secret Weapon

Here's where it gets good. The IRS offers a "safe harbor" that protects you from penalties—even if you end up owing money in April.

The 100%/110% Rule:

If you pay at least 100% of last year's tax liability in estimated payments, you won't owe penalties—no matter how much your income increases.

If your AGI was over $150,000 last year, you need to pay 110% of last year's liability instead.

Why this is amazing for creators:

Let's say you owed $15,000 in total federal taxes last year. This year, you blow up on TikTok and earn triple.

Using safe harbor, you only need to pay $15,000 (or $16,500 if you made over $150K) in quarterly estimates. Even if you end up owing $45,000, you won't pay penalties as long as your estimated payments hit the safe harbor threshold.

You'll still owe the difference in April, but you've avoided penalties and kept more money working for you throughout the year.

How to use safe harbor:

Look at your prior year's total tax (line 24 on Form 1040)
Divide by 4
Pay that amount each quarter

Done. You're penalty-protected.

The 25-30% Rule: How Much to Set Aside

While safe harbor protects you from penalties, you still need cash to pay your actual tax bill. Here's a simple system:

Set aside 25-30% of every payment you receive.

This covers:

Federal income tax (10-37%, depending on bracket)
Self-employment tax (15.3% on 92.35% of net earnings)
State income tax (0-13%, depending on state)

Why the range?

25% works if you have significant business deductions, live in a no-income-tax state, or your total income keeps you in lower brackets
30% is safer if you're in higher brackets, live in a high-tax state (California, New York), or want extra cushion

Pro tip: Create a separate savings account labeled "Taxes." Every time money hits your main account, immediately transfer your percentage to the tax account. Don't touch it.

This simple system means you'll always have money when quarterly payments come due.

Calculating Your Quarterly Payment: Two Methods

Method 1: Annualized Income (Complex but Accurate)

This method calculates your tax based on actual income received each quarter. It's precise but requires recalculating every quarter.

Best for: Creators whose income is significantly higher or lower than last year, and who want to optimize cash flow.

Method 2: Safe Harbor (Simple and Protected)

Pay 100-110% of last year's tax liability, divided into four equal payments.

Best for: Almost everyone. It's simple, protects you from penalties, and works even with wildly variable income.

Our recommendation: Use safe harbor. The simplicity is worth more than the potential cash flow optimization of the annualized method.

Step-by-Step: Making Your First Quarterly Payment

Step 1: Calculate your safe harbor amount

Find your prior year's total tax (Form 1040, line 24). Divide by 4.

Example: Last year's tax was $12,000. Your quarterly payment is $3,000.

Step 2: Choose your payment method

You have several options:

IRS Direct Pay (free): Pay directly from your bank account at irs.gov/payments
EFTPS (free): Electronic Federal Tax Payment System—requires enrollment but useful for scheduling recurring payments
Credit/Debit Card (fees apply): Pay through approved processors for a 1.87-2.35% fee
Check by mail: Old school but works

Step 3: File Form 1040-ES

Form 1040-ES is the voucher you submit with your payment if paying by mail. If paying electronically, you don't need to file anything separately—just make the payment.

Step 4: Keep records

Save confirmation numbers, receipts, or canceled checks. You'll need to report your estimated payments on your annual tax return.

State Quarterly Taxes: Don't Forget

If you live in a state with income tax, you likely need to pay state quarterly estimates too.

States with no income tax (lucky you):

Alaska, Florida, Nevada, New Hampshire*, South Dakota, Tennessee*, Texas, Washington, Wyoming

*New Hampshire and Tennessee tax investment income but not earned income.

For everyone else: Your state's Department of Revenue website will have estimated tax forms and payment portals. The deadlines usually match federal dates.

Common Mistakes to Avoid

Mistake #1: Waiting until Q4 to start

If you realize mid-year that you should be paying quarterlies, start immediately. Paying 3 out of 4 quarters is better than paying 0.

Mistake #2: Forgetting self-employment tax

Self-employment tax (Social Security + Medicare) is 15.3% and applies to your net self-employment income. It's separate from income tax and catches a lot of first-time creators off guard.

Mistake #3: Ignoring state taxes

Federal penalties are annoying. State penalties vary—some states are more aggressive than others. Don't assume federal payments cover everything.

Mistake #4: Paying too little to "keep more cash"

Underpaying means penalties plus a big bill in April. The IRS charges around 8% interest on underpayments. Unless your investments consistently beat 8% after taxes, you're better off paying estimates on time.

Mistake #5: Not adjusting for a big income jump

Safe harbor protects you from penalties, but it doesn't reduce your actual tax bill. If your income doubles, you'll owe the difference in April. Make sure you're setting aside enough throughout the year.

Tools and Automations to Make It Painless

The Tax Savings Account:

Open a high-yield savings account (currently paying 4-5%)
Label it "Taxes"
Set up automatic transfers of 25-30% of each deposit
Your quarterly payment money earns interest while waiting

Calendar Reminders:

Set recurring reminders one week before each deadline
Dates: April 8, June 8, September 8, January 8
This gives you time to transfer funds and make payments

EFTPS Scheduled Payments:

Enroll at eftps.gov (takes 5-7 business days)
Schedule recurring payments for each quarter
Never miss a deadline again

How OnlyFunds Helps With Taxes

Managing irregular income and quarterly taxes is exactly why OnlyFunds exists. Our platform helps creators:

Track income by source: See exactly what's come in from each platform
Estimate tax liability: Project your taxes based on actual year-to-date income
Coordinate retirement contributions: Reduce taxable income strategically
Time investments around tax payments: Keep enough liquid for quarterly payments while still investing for growth

We don't replace your CPA, but we give you the tools to stay organized and make informed decisions.

Action Steps

Find last year's total tax (Form 1040, line 24)
Divide by 4 for your quarterly safe harbor payment
Open a tax savings account if you don't have one
Set up automatic transfers of 25-30% of income to that account
Schedule your first payment through IRS Direct Pay or EFTPS
Set calendar reminders for one week before each deadline

The Bottom Line

Quarterly taxes aren't punishment—they're just how self-employment works. Once you have a system, they're no more stressful than paying any other bill.

The key is automation: set aside money automatically, pay using safe harbor, and let the system run itself.

Do this right, and April 15 stops being a day of dread. It's just another day.

Want help coordinating your taxes with your investment strategy? Learn how OnlyFunds works for creators.