With most Heard subscription plans, you can expect to receive a quarterly estimate each quarter by completing the quarterly checklist. If you joined Heard or upgraded to a subscription plan that includes quarterly tax estimates after the sign-up cutoff for the quarter, your books don't yet cover enough of the quarter for a personalized estimate. Instead, you'll complete the safe harbor questions and receive a safe harbor estimate.
What is the safe harbor method for quarterly taxes?
The Safe Harbor method is a simple way to calculate your federal tax estimate, based on what you owed last year rather than what you're earning this year.
The amount is your prior year's total federal tax liability divided by four. If your adjusted gross income last year was more than $150,000, or more than $75,000 filing separately, the amount is 110% of that liability divided by four. The estimate is calculated by dividing your prior year's tax liability (the amount you owed in last year's taxes) by four.
Your total tax liability is the total tax for the year, found on Line 24 of your Form 1040. It isn't the amount you paid at filing, and it isn't your refund.
How to receive a Safe Harbor federal quarterly tax estimate
To receive an estimate, you will need:
- Your 1040 Individual Tax Return from the previous year.
- If applicable, any estimated tax payment vouchers.
To get started, go to Taxes > Quarterly Taxes and proceed through the checklist to enter your information.
What about state taxes?
At this time, Heard's Safe Harbor method will only generate a federal estimate. Most states also use the Safe Harbor Method to calculate estimated taxes. This quarter, check your state's website for guidance on your specific situation. In future quarters, you can receive a state quarterly tax estimate by completing the quarterly checklist for a personalized estimate.
When are quarterly taxes due?
The year is divided into four payment periods for estimated tax purposes, each with a specific payment due date.
- Quarter 1 - April 15th
- Quarter 2 - June 15th
- Quarter 3 - September 15th
- Quarter 4 - January 15th
If the payment due date falls on a weekend or holiday, the deadline moves to the next business day.
What if the payment deadline has already passed?
The safe harbor estimate calculator remains open. You can still complete it and receive your safe harbor estimate for that quarter. Payments made after the deadline may be subject to an IRS underpayment penalty, which continues to accrue until you make the payment.