How to File Quarterly Estimated Taxes as a New Podiatry Practice
Learn how to file quarterly estimated taxes for your new podiatry practice, including deadlines, calculation methods, and payment options.
As a new podiatry 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 after withholding and credits. This guide walks you through the process, from calculating your payments to submitting them on time, so you can avoid penalties and keep your practice financially healthy.
Why You Need to Pay Quarterly Estimated Taxes
When you were an employee, your employer withheld taxes from each paycheck. As a self-employed podiatrist or practice owner, no one withholds taxes for you. Instead, you must pay estimated tax directly to the IRS four times a year. This covers not only income tax but also self-employment tax (Social Security and Medicare), which is 15.3% of your net earnings (12.4% for Social Security and 2.9% for Medicare). For 2026, the Social Security wage base is expected to be around $176,100, so you’ll pay the full 15.3% on net earnings up to that amount.
Failing to pay enough estimated tax can result in penalties, even if you pay all your taxes by April 15. The IRS calculates penalties based on the amount you underpaid and the time it was underpaid. To avoid this, you need to pay at least 90% of your current year’s tax liability or 100% of the previous year’s liability (110% if your adjusted gross income was over $150,000).
Step 1: Estimate Your Annual Income and Deductions
Start by projecting your practice’s net income for the year. This is your total revenue minus business expenses, such as:
- Rent and utilities
- Medical supplies and equipment
- Staff salaries and benefits
- Malpractice insurance
- Marketing and advertising
- Continuing education
- Office software and technology
Use your first few months of actual income and expenses to project the full year. If you’re just starting, be conservative: estimate lower income and higher expenses to avoid underpayment penalties.
Step 2: Calculate Your Estimated Tax Liability
You can use IRS Form 1040-ES, which includes a worksheet to calculate your estimated tax. Here’s the basic process:
- Estimate your adjusted gross income (AGI) for the year.
- Subtract your standard deduction (for 2026, the standard deduction for single filers is expected to be around $15,000, and for married filing jointly around $30,000).
- Calculate your taxable income.
- Apply the tax rates for your bracket (2026 rates range from 10% to 37%).
- Add self-employment tax (15.3% of your net earnings).
- Subtract any credits you qualify for, such as the qualified business income deduction (up to 20% of your qualified business income).
- Divide by 4 to get your quarterly payment.
For example, if your projected net income is $120,000, your self-employment tax would be about $18,360 (15.3% of $120,000). Your income tax might be around $18,000 after deductions, making your total liability roughly $36,360. Divide by 4, and each quarterly payment would be about $9,090.
Step 3: Know the Quarterly Deadlines for 2026
Estimated tax payments are due four times a year. For the 2026 tax year, the deadlines are:
- April 15, 2026 (for income earned January 1 to March 31)
- June 15, 2026 (for income earned April 1 to May 31)
- September 15, 2026 (for income earned June 1 to August 31)
- January 15, 2027 (for income earned 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 at least a week in advance.
Step 4: Choose How to Pay
You have several options to pay your estimated taxes:
- IRS Direct Pay: Free, secure, and allows you to pay directly from your bank account. You can schedule payments up to 30 days in advance.
- Electronic Federal Tax Payment System (EFTPS): Free, but requires enrollment. You can schedule payments up to 365 days in advance, which is helpful for planning.
- Credit or debit card: Convenient, but the IRS charges a processing fee (around 1.85% to 2.9% of the payment amount, depending on the processor).
- Mail a check: Include Form 1040-ES payment voucher. This is slower and riskier, so use it only if you’re close to the deadline.
Recommendation: Use IRS Direct Pay or EFTPS. They are free and provide immediate confirmation. Set up your account now, even if you don’t owe yet.
Step 5: Adjust Your Payments as the Year Progresses
Your income may change during the year. If you have a profitable quarter, you may need to increase your next payment. If you have a slow quarter, you might decrease it, but be careful not to underpay. Use the annualized income installment method (Schedule AI on Form 2210) if your income is uneven, but that’s more complex. For most new practices, the simple method (paying 25% of your total estimated tax each quarter) works fine.
What If You Miss a Payment?
If you miss a deadline, pay as soon as possible. The IRS charges a penalty based on the amount owed and the number of days late. The current penalty rate is the federal short-term rate plus 5%, compounded daily. For example, if you owe $5,000 and are 30 days late, the penalty might be around $20 to $30. It’s not huge, but it adds up. If you realize you underpaid, file Form 2210 to see if you qualify for a waiver (e.g., if the underpayment was due to unusual circumstances).
FAQ
Q: Do I have to pay estimated taxes if I have a partner or an S-corp? A: Yes, but the rules differ. In a partnership, partners pay estimated taxes on their share of income. In an S-corp, you must pay yourself a reasonable salary, and you’ll have withholding from that salary, but you may still need to make estimated payments on distributions and other income.
Q: Can I pay estimated taxes from my practice’s business account? A: Yes, you can pay from your business account, but the payment is for your personal tax liability. Keep records to show the payment was for your taxes, not a business expense.
Q: What if I overpay my estimated taxes? A: You’ll get a refund when you file your annual tax return, or you can apply the overpayment to next year’s estimated taxes. Overpaying is not ideal because you lose the use of that money, but it’s better than underpaying and facing penalties.
Q: Should I hire a CPA to handle my estimated taxes? A: If you’re comfortable with numbers, you can do it yourself. But a CPA can help you project income accurately, maximize deductions, and avoid penalties. Fees range from $300 to $1,000 for a basic quarterly tax planning engagement.
The Bottom Line
Filing quarterly estimated taxes is a non-negotiable part of owning a podiatry practice. Start by estimating your annual income and expenses, calculate your liability using Form 1040-ES, and pay by the four deadlines. Use IRS Direct Pay or EFTPS for convenience and to avoid mailing issues. Review your estimates quarterly and adjust as needed. If you’re unsure, consult a tax professional. Staying on top of your estimated taxes will keep you penalty-free and give you peace of mind, so you can focus on treating your patients and growing your practice.