How to Pay Quarterly Estimated Tax
Owner-operators don't have tax taken out of each load, so the IRS expects 4 payments during the year. Paying them avoids a penalty in April.
Due dates
| Payment | Covers | Due |
|---|---|---|
| 1 | Jan - Mar | April 15 |
| 2 | Apr - May | June 15 |
| 3 | Jun - Aug | September 15 |
| 4 | Sep - Dec | January 15 (next year) |
How much to pay
- Simple safe way: pay 1/4 of last year's total tax each time (110% of it if your income was over $150,000).
- Or set aside about 25-30% of your profit (gross minus expenses - your Bayloas Money tab shows this) and pay from that.
- Remember self-employment tax (15.3%) is included in what you owe.
- Many states also want estimated payments - check your state tax site.
Steps
- 1Work out the amount (see above) - your Money tab in the Bayloas portal shows profit for the quarter.
- 2Go to IRS Direct Pay (free, no signup) - link below.
- 3Choose "Estimated Tax", "1040-ES", and the tax year.
- 4Pay from your bank account and save the confirmation number.
Need help? We're here
Most carriers can do this on their own with the steps above. Rather have us do it? Bayloas carriers tap Have Bayloas do it for me, send the few details we need from the portal, and pay a small filing fee by card. Government fees you pay yourself on the official site - we send you the link. Questions? Email us or message your dispatcher.
Email: info@bayloas.com
This is a general guide, not legal or tax advice. Rules can change - check the official site linked above, or ask a tax professional if you're unsure.