How to File Quarterly Estimated Taxes as a New Audiology Practice
Learn the step-by-step process for filing quarterly estimated taxes as a new audiology practice, including deadlines, calculations, and payment methods.
As a new audiology practice owner, you are now responsible for paying taxes on your income throughout the year, not just once at tax time. The IRS requires you to pay estimated taxes quarterly if you expect to owe at least $1,000 in federal taxes for the year. This guide explains exactly how to calculate, file, and pay your quarterly estimated taxes, with practical steps you can take this week.
Understand Who Must Pay Estimated Taxes
If you operate your audiology practice as a sole proprietorship, partnership, S corporation, or LLC, you likely need to pay estimated taxes. The rule applies if you expect to owe at least $1,000 in federal income tax after subtracting withholding and credits. Since your practice does not have an employer withholding taxes, you must make these payments yourself.
For 2026, the IRS requires that your total estimated tax payments (plus any withholding) equal at least 100% of your previous year’s tax liability (or 110% if your adjusted gross income was over $150,000). If you are new and have no prior year liability, you must pay at least 90% of your current year’s tax liability to avoid penalties.
Calculate Your Estimated Tax Liability
To calculate your quarterly payments, you need to estimate your annual taxable income. Start with your projected net profit from the practice, which is your revenue minus business expenses. Then subtract your standard deduction (for 2026, the standard deduction is $15,000 for single filers and $30,000 for married filing jointly, but these may adjust slightly).
Next, estimate your self-employment tax, which is 15.3% of your net earnings (12.4% for Social Security and 2.9% for Medicare). You can deduct half of this amount when calculating your income tax. Use the IRS Form 1040-ES worksheet to compute your estimated tax. The worksheet walks you through:
- Projected gross income
- Adjustments to income (like the self-employment tax deduction)
- Standard deduction or itemized deductions
- Tax on the taxable income (using the 2026 tax brackets)
- Self-employment tax
- Any credits
- Total estimated tax for the year
Divide the total by 4 to get your quarterly payment. If your income is uneven, you can use the annualized income installment method, but that is more complex. For most new practices, the simple method works fine.
Know the Quarterly Deadlines
For tax year 2026, the IRS deadlines for estimated tax payments are:
- April 15, 2026 (for income earned January 1 to March 31)
- June 15, 2026 (for April 1 to May 31)
- September 15, 2026 (for June 1 to August 31)
- January 15, 2027 (for September 1 to December 31)
If a deadline falls on a weekend or holiday, the payment is due the next business day. Mark these dates on your calendar and set reminders. Missing a deadline can result in penalties, even if you pay later.
Choose a Payment Method
The IRS offers several ways to pay your estimated taxes. The easiest and most secure method is the Electronic Federal Tax Payment System (EFTPS). You can enroll online at EFTPS.gov, and it takes about 5 minutes. Once enrolled, you can schedule payments in advance. Other options include:
- IRS Direct Pay: free, allows you to pay directly from your bank account without enrollment
- Debit or credit card: processed by third-party providers, with fees ranging from 1.87% to 2.9% of the payment amount
- Check or money order: mail with Form 1040-ES voucher, but this is slower and less secure
For state estimated taxes, check your state’s department of revenue website for similar payment options. Most states have online portals.
Track Your Payments and Adjust
Keep a record of each payment you make, including the date, amount, and confirmation number. You will need this information when you file your annual tax return (Form 1040). As your practice grows, your income may change. If your actual income is significantly higher or lower than your estimate, you can adjust your next quarterly payment. There is no penalty for overpaying, but you will get a refund later. Underpaying can trigger penalties, so it is better to overestimate slightly.
Avoid Common Mistakes
New practice owners often make these errors:
- Forgetting to pay state estimated taxes: Most states also require quarterly payments. Check your state’s rules.
- Using the wrong tax rate: The 2026 tax brackets are not the same as 2025. Use the current Form 1040-ES worksheet.
- Not accounting for self-employment tax: This is separate from income tax and can be a significant amount.
- Missing deadlines: Set automatic reminders or schedule payments in advance.
FAQ
What happens if I miss a quarterly estimated tax payment?
You will likely incur a penalty based on the amount owed and the number of days late. The IRS calculates the penalty using the federal short-term interest rate plus 3%. You can reduce the penalty by paying as soon as possible.
Can I pay estimated taxes monthly instead of quarterly?
The IRS requires quarterly payments, but you can pay more frequently if you prefer. For example, you could make monthly payments that total the required quarterly amount. This can help with cash flow, but you must ensure the total is paid by each quarterly deadline.
Do I need to file a separate tax return for my practice?
If you are a sole proprietor or single-member LLC, you report your practice income on Schedule C of your personal Form 1040. You do not file a separate business return. If you are an S corporation or partnership, you file a separate return, but estimated taxes are still paid by the owners.
What if I have a loss in the first year?
If your practice operates at a loss, you may not owe estimated taxes for that year. However, you still need to file your tax return to report the loss, which can offset other income or carry forward to future years. If you already made payments, you can request a refund when you file.
The Bottom Line
Filing quarterly estimated taxes as a new audiology practice is a straightforward process once you understand the rules. Calculate your estimated tax using Form 1040-ES, pay by the four deadlines, and keep records. Start by enrolling in EFTPS and setting up a calendar with the 2026 deadlines. If you are unsure about your calculations, consult a CPA who works with small practices. Taking these steps now will help you avoid penalties and keep your practice financially healthy.