If you’ve ever hit April and thought…“Wait… I owe HOW much?!”or“Why did the IRS penalize me when I paid my taxes?!”

Here’s the truth: as a contractor, nobody is withholding taxes for you like a W-2 job. That means the IRS expects you to pay throughout the year, not just at tax time.

✔️ Estimated tax due dates (every year):✔️ April 15✔️ June 15✔️ September 15✔️ January 15 (next year)

And the big question: how much should you pay?

You’re estimating your annual profit — and in construction that’s tough because cash flow isn’t consistent. But if you want to avoid penalties, it’s usually better to overpay a little vs underpay.

✔️ Safe harbor rules (penalty protection):✔️ Pay 90% of this year’s total taxOR✔️ Pay 100% of last year’s total tax (sometimes 110% for higher incomes)

Pro tip: last year’s tax return isn’t just paperwork… it’s your cheat code.

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.