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Tax Provision Calculator

Figure out exactly how much to set aside each month for quarterly taxes

Estimated Tax Bracket 22%
10% 22% 37%

2024–2025 US federal tax brackets range from 10% to 37%

Gross Monthly Revenue $8,000.00
− Business Deductions −$2,000.00
= Taxable Monthly Income $6,000.00

Set Aside Each Month

$1,320

$6,000.00 × 22%

Quarterly Estimated Tax

$3,960

Due Apr 15, Jun 15, Sep 15, Jan 15

Annual Tax Liability

$15,840

Estimated for the full year

Effective Tax Rate on Revenue 16.5%
0% 37% (max bracket)
How Estimated Quarterly Taxes Work

The US IRS requires freelancers and self-employed individuals to pay estimated taxes quarterly:

  • Q1 (Apr 15): Jan–Mar earnings
  • Q2 (Jun 15): Apr–May earnings
  • Q3 (Sep 15): Jun–Aug earnings
  • Q4 (Jan 15): Sep–Dec earnings

This is an estimate. Actual liability depends on your total annual income, filing status, state taxes, and available credits. Consult a CPA for your specific situation.

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Set up an automatic transfer to a separate high-yield savings account on each payday. This keeps your tax money separate and earns interest until quarterly payments are due.

Why Set Aside Tax Money Monthly?

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Avoid Penalties

The IRS charges underpayment penalties if you owe more than $1,000 at tax time and haven't paid estimated taxes throughout the year.

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Earn Interest

Put tax savings in a high-yield savings account (4–5% APY). Your tax money earns interest until you pay quarterly, rather than sitting in checking.

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Peace of Mind

Knowing your tax money is already set aside removes the stress of scrambling for cash when quarterly filing deadlines arrive.

📋 2024–2025 US Federal Tax Brackets

Rate Single Filers Married Filing Jointly
10% $0 – $11,600 $0 – $23,200
12% $11,601 – $47,150 $23,201 – $94,300
22% $47,151 – $100,525 $94,301 – $201,050
24% $100,526 – $191,950 $201,051 – $383,900
32% $191,951 – $243,725 $383,901 – $487,450
35% $243,726 – $609,350 $487,451 – $731,200
37% $609,351+ $731,201+

Note: These are marginal brackets. You only pay the higher rate on income within that bracket, not your entire income.

💡 Common Freelance Deductions

Reduce your taxable income with these legitimate business expenses:

  • Home office (dedicated space)
  • Computer & equipment
  • Software subscriptions
  • Internet & phone bills
  • Co-working space fees
  • Professional development
  • Health insurance premiums
  • Retirement contributions (SEP IRA)

⚠️ Reminder: This calculator provides estimates for monthly savings targets. Your actual tax liability depends on your total annual income, filing status, state and local taxes, self-employment tax (15.3%), and available credits. Always consult a qualified tax professional.