Quarterly Tax Tips for US Online Sellers

Managing taxes can be one of the trickiest parts of running an online store—especially when you’re handling everything from inventory to fulfillment. For US online sellers, staying on top of quarterly tax tips helps keep you compliant with IRS rules, avoid penalties, and maintain steady cash flow. Here’s a clear guide to help you plan your estimated tax payments in 2025—plus tips on how smart accounting services can make the process easier.

Key Quarterly Tax Deadlines for 2025

Here are the IRS deadlines for 2025 quarterly estimated tax payments:

  • Q1: April 15, 2025 – Covers income from January 1 to March 31

  • Q2: June 16, 2025 – Covers income from April 1 to May 31

  • Q3: September 15, 2025 – Covers income from June 1 to August 31

  • Q4: January 15, 2026 – Covers income from September 1 to December 31

Note: If a due date falls on a weekend or federal holiday, it shifts to the next business day.

Do You Need to Pay Estimated Taxes?

Most US online sellers need to make quarterly estimated payments if:

  • They expect to owe at least $1,000 in federal taxes after subtracting credits and withholding

  • They don’t have taxes automatically withheld (which is common for independent sellers)

Online sales platforms may issue 1099-K forms, but you’re still responsible for reporting and paying income tax on profits—even if you don’t receive those forms.

Quarterly Tax Tips: How to Estimate and Pay

1. Estimate Your Income and Taxes

Use IRS Form 1040-ES to calculate your expected earnings and tax liability. Don’t forget to include income from all channels.

2. Divide Into Four Equal Payments

Split the total annual tax into four quarterly amounts.

3. Follow Safe Harbor Rules

To avoid underpayment penalties, you can either pay:

  • 100% of last year’s tax (110% if AGI exceeded $150,000), or

  • 90% of this year’s expected total

4. Use Approved IRS Payment Methods

  • Direct Pay

  • EFTPS

  • IRS Online Account

  • Mailed check with payment voucher

✅ Counto’s all-inclusive accounting plans for online sellers feature multicurrency support, unlimited transactions, GST submissions, and tax filing—with no hidden fees. Benefit from a dedicated team of experts, including a bookkeeper, Chartered Accountant, and tax specialist. Optimise your e-commerce finances today.

Tax Deductions Online Sellers Should Track

Lower your tax bill by deducting legitimate business expenses. Here are key categories US online sellers often forget:

  • Product sourcing and inventory

  • Shipping and postage fees

  • Website hosting, domain, and e-commerce tools

  • Advertising and social media promotions

  • Marketplace transaction fees

  • Business-use portion of your internet and phone

  • Office supplies and home office expenses

  • Tax prep or accounting services fees

Stay Organized Year-Round

The easiest way to stay on top of quarterly taxes? Keep your records clean and current. Make sure you’re tracking:

  • Sales from all platforms

  • Expenses and receipts

  • Inventory purchases

  • Previous tax payments

  • Business mileage or utilities (if applicable)

Well-organized financial records also make it easier to work with accounting services if you decide to bring in professional help.

Watch Out for State and Local Taxes

In addition to federal taxes, US online sellers may need to:

  • File state income tax (quarterly or annually)

  • Collect and remit sales tax in states where you have economic nexus

  • Track local filing requirements for specific states or cities

Check your state’s Department of Revenue website for detailed guidance.

When Your Business Grows, Adjust Your Estimates

Online businesses often see income spikes during holidays or promotional periods. If your profits increase or decrease significantly, you may need to recalculate your quarterly tax payments to avoid overpaying or underpaying.

When to Consider Accounting Services

Handling taxes manually can take up valuable time—especially when you’re focused on product listings, customer service, or fulfillment. Many US online sellers benefit from using accounting services that:

  • Automate quarterly tax calculations

  • Organize receipts and transaction records

  • Maximize deductions to lower your tax bill

  • Keep you compliant with IRS rules

  • Offer insights into profit trends and cash flow

These services can help you focus on growing your online store while reducing the risk of errors or missed deadlines.

Summary

Quarterly estimated taxes are a key responsibility for US online sellers. By following these quarterly tax tips, keeping detailed records, and staying aware of both federal and state deadlines, you can stay compliant and avoid costly penalties. Whether you manage your own books or work with trusted accounting services, consistency is the key to a smooth tax year.

Experience the Counto advantage

Counto is the trusted outsourced provider of accounting, tax preparation and CFO services for SMEs and ecommerce businesses. Get accounting plans that combine bookkeeping with corporate tax filing to help you stay compliant at an affordable price. To learn more, speak to us directly on our chatbot, email [email protected], or use our contact form. to get started.

 

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