Gig Work Tax

How do I set up automatic quarterly tax payments?

Quarterly Taxesintermediate3 answers · 5 min readUpdated February 28, 2026

Quick Answer

You can set up automatic quarterly tax payments through EFTPS (IRS's free system) by scheduling recurring payments on the four quarterly due dates: January 15, April 15, June 15, and September 15. Most freelancers automate payments of 25% of their expected annual tax liability, typically ranging from $750-$5,000+ per quarter.

Best Answer

JO

James Okafor, Self-Employment Tax Specialist

Best for freelancers whose primary income comes from self-employment

Top Answer

Setting up EFTPS for automatic payments


The Electronic Federal Tax Payment System (EFTPS) is the IRS's free system for making tax payments. It's the most reliable way to automate quarterly payments because it's directly connected to the IRS systems.


To get started, you'll need:

  • Your Social Security Number or Individual Taxpayer Identification Number
  • Bank account information (routing and account numbers)
  • Your prior year tax return (for verification)

  • Step-by-step EFTPS setup process


    1. Visit EFTPS.gov and click "Enroll"

    2. Provide personal information including SSN, name, address, and phone number

    3. Enter bank account details for the account you want payments withdrawn from

    4. Verify your identity using information from your prior year tax return

    5. Wait 7-10 business days for your PIN to arrive by mail

    6. Log in and schedule payments using your PIN


    How to schedule recurring quarterly payments


    Once enrolled in EFTPS:

    1. Calculate your quarterly payment amount (typically 25% of expected annual tax)

    2. Log into EFTPS and select "Make a Payment"

    3. Choose "Form 1040ES" (Estimated Tax for Individuals)

    4. Enter payment amount and select "Recurring Payment"

    5. Set payment dates: January 15, April 15, June 15, September 15

    6. Schedule payments at least 2 business days in advance


    Example: $60,000 freelancer setting up automatic payments


    For a freelancer expecting $60,000 in annual income:

  • Estimated annual tax: ~$22,500 (including self-employment tax)
  • Quarterly payment amount: $22,500 ÷ 4 = $5,625
  • Payment schedule: $5,625 on Jan 15, Apr 15, Jun 15, Sep 15

  • Schedule all four payments at once, but review and adjust quarterly if your income changes significantly.


    Alternative automation options



    Key dates and timing considerations


  • Q1 payment: Due January 15 (for Oct-Dec of prior year)
  • Q2 payment: Due April 15 (for Jan-Mar)
  • Q3 payment: Due June 15 (for Apr-May)
  • Q4 payment: Due September 15 (for Jun-Aug)
  • Final quarter: Handled with tax return filing by April 15

  • Note the uneven periods - Q3 covers only 2 months while Q1 covers 3 months.


    How to adjust payments if income changes


    Review your income quarterly and adjust future payments if needed:

  • Income up 20%+: Increase remaining payments to avoid underpayment penalties
  • Income down 20%+: Decrease remaining payments to avoid overpaying
  • Major changes: Consider making a mid-quarter adjustment payment

  • What you should do


    Start by enrolling in EFTPS today - the 7-10 day setup time means you need to plan ahead. Calculate your expected quarterly payment using 25% of last year's total tax liability as a starting point, then schedule all four payments for the year.


    Use our quarterly estimator to calculate your exact payment amounts based on your expected income and deductions.


    Key takeaway: EFTPS is the most reliable way to automate quarterly payments - enroll now since it takes 7-10 days to receive your PIN, and schedule $5,625 quarterly payments for every $60,000 in expected freelance income.

    Key Takeaway: EFTPS takes 7-10 days to set up but provides the most reliable automation - schedule quarterly payments equal to 25% of expected annual tax liability.

    Automatic payment methods comparison

    MethodSetup TimeCostReliabilityBest For
    EFTPS7-10 daysFreeHighestAll payments over $1,000
    Bank Bill PayImmediateUsually freeGoodPayments under $1,000
    Tax SoftwareImmediate$10-30 per paymentGoodTech users who want integration
    Third-party Services1-2 daysService fees varyVariableUsers wanting extra features

    More Perspectives

    JO

    James Okafor, Self-Employment Tax Specialist

    Best for people with day jobs who freelance part-time

    Simpler automation for smaller payments


    As a side hustler, your quarterly payments are typically smaller ($200-$2,000 per quarter), which gives you more automation options beyond EFTPS.


    Many banks' bill pay systems work well for smaller quarterly payments and can be set up immediately without waiting for IRS PIN delivery.


    Bank bill pay setup for quarterly taxes


    1. Log into your bank's online banking

    2. Add "United States Treasury" as a payee

    3. Use your SSN as the account number

    4. Schedule recurring payments for the four quarterly due dates

    5. Include "Form 1040ES" in the memo line


    Example: $8,000 side hustle automation


    For $8,000 in annual side hustle income:

  • Estimated quarterly payment: ~$600
  • Automation options: Bank bill pay works fine for this amount
  • Timing: Schedule 5-7 days before due date to ensure processing

  • What you should do


    For payments under $1,000 per quarter, start with your bank's bill pay system for immediate setup. For larger amounts or if you want the most reliable option, use EFTPS.


    Key takeaway: Side hustlers with smaller quarterly payments ($200-$1,000) can use bank bill pay for immediate automation, while EFTPS remains the gold standard for larger payments.

    Key Takeaway: Side hustlers can use bank bill pay for smaller quarterly payments under $1,000 for immediate automation.

    JO

    James Okafor, Self-Employment Tax Specialist

    Best for people in their first year of freelancing

    Start simple in your first year


    As a new freelancer, you don't have last year's tax liability to base payments on, making automation more challenging initially. Focus on setting up the infrastructure while you learn your income patterns.


    First-year automation strategy


    1. Set up EFTPS enrollment immediately (even before you need it)

    2. Start with conservative estimates - better to overpay slightly than underpay

    3. Plan to adjust payments as you learn your actual income patterns

    4. Track everything using our freelance dashboard to inform future automation


    Conservative payment calculation for new freelancers


    Without last year's data, use these rough guidelines:

  • Low estimate: 20% of gross freelance income
  • Conservative estimate: 30% of gross freelance income
  • High-earner estimate: 35% of gross freelance income

  • Start with the conservative estimate and adjust after Q1 when you have real data.


    What you should do


    Enroll in EFTPS now even if you're not ready to make payments - having it ready prevents missed deadlines later. Start with conservative quarterly estimates and adjust as you gather data on your actual income and expenses.


    Key takeaway: New freelancers should enroll in EFTPS immediately and start with conservative payments equal to 30% of expected quarterly income, adjusting as actual income patterns become clear.

    Key Takeaway: New freelancers should enroll in EFTPS immediately and start with conservative payments equal to 30% of expected quarterly income.

    Sources

    quarterly taxesautomatic paymentseftpstax automation

    Reviewed by James Okafor, Self-Employment Tax Specialist on February 28, 2026

    This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.