Tax Saver Account

Whether you pay quarterly estimated taxes or once a year, never scramble at tax time again. Our Tax Saver Account helps you set aside the money you need, automatically, so it’s there when it’s time to pay the IRS or your state tax board. Automate your savings, avoid surprises, and pay taxes with confidence.

• Earn 0.25% APY*
• Funds are distributed to your checking or savings account whenever you choose, four times per year
• Additional withdrawals allowed with a $20 fee per withdrawal

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Why a dedicated Tax Saver Account strategy works.

• Separate, on-purpose savings: Keep tax funds out of everyday spending so you don’t “accidentally” use them.
• Automatic contributions: Set and forget weekly, biweekly, or monthly transfers that build your balance all year to help you have funds for tax deadlines.
• Target your goal: Save toward a clear annual or quarterly tax target with progress tracking.
• Reduce stress: No more last minute juggling when quarterly estimates (or April) arrive.
• Designed for 1099 and W 2 earners: Ideal for self employed, freelancers, side hustlers, and anyone who wants tax-ready cash.

Heads up: This page provides general information. FIGFCU does not provide tax advice. Please consult a qualified tax professional for your specific situation.

How to start saving for quarterly taxes

1. Estimate your annual tax total: Use last year as a baseline or ask your tax pro. Many self employed Members start by saving 25–35% of net income (confirm your percentage with a professional).
2. Set a quarterly target: Divide the annual estimate by four to set Q1, Q2, Q3, and Q4 goals. Add a small buffer for safety.
3. Automate contributions: Choose a schedule (weekly/biweekly/monthly), or split your Direct Deposit so a fixed percentage flows straight into your Tax Saver Account.
4. Track and adjust: Check progress monthly and adjust your percentage if your income changes.
5. Pay from your tax funds when due: Use your dedicated savings to cover quarterly estimated taxes and any annual balance due at filing.

Who benefits from a Tax Saver Account?

Anyone can benefit from a Tax Saver Account. Whether you’re a full-time employee with a W-2, a self-employed individual, or need a little discipline to ensure you have funds come tax season. Here are the people who usually open a Tax Saver Account.

• Self employed and 1099 earners who make quarterly estimated payments.
• Freelancers and side hustlers with variable income.
• Small business owners and LLCs who want a clean separation for tax funds.
• W-2 earners who expect a balance due because of bonuses, restricted stock units (RSUs), commissions, or multiple jobs
• A dedicated Tax Saver account to separate funds from daily spending.
• Automatic transfers on your schedule.
• Direct deposit splits to route a percentage to your tax savings.
• Goal tracking so you can see progress toward your next payment.
• Earn a competitive yield, so your money makes money as you save to pay your taxes.

Frequently Asked Questions

What is a Tax Saver Account?

A Tax Saver Account is a dedicated savings strategy, often a separate savings account, used to set aside a percentage of income throughout the year so you have cash ready for quarterly estimated taxes and your annual filing balance due. The goal is to keep tax money separate from everyday spending and automate contributions, so nothing gets missed.

Can anyone open a Tax Saver Account? Yes. You don’t need to be self-employed, a freelancer, or a 1099 earner to reap the benefits of a Tax Saver Account. All Members can open an account, determine how much to transfer to it, and use it to pay quarterly and annual taxes.

Who benefits most from a Tax Saver Account?

Anyone can benefit from opening a Tax Saver Account. Here are the people who most commonly open an account. A Tax Saver Account is primarily a savings strategy to help ensure you have funds to pay your quarterly or annual taxes. Regardless of how you earn your money, a Tax Saver Account offers a structured way for you to save for taxes. Common Tax Saver Account holders include:

• Self employed and 1099 earners who pay quarterly estimates
• Freelancers and side hustlers with variable income
• Small business owners and LLCs who want a clean separation of tax funds
• W 2 earners who expect to owe due to bonuses, restricted stock unit (RSUs), commissions, or multiple jobs

How much should I save for taxes?

There’s no one-size-fits-all number. Many self employed Members start by saving a set percentage of their net income (e.g., 25–35%) and then fine tune with a tax professional. Your prior year’s bill can be a helpful benchmark if your income is similar.

I’m paid irregularly. How can I stay on track?

Automate transfers every time you get paid (or weekly/biweekly for consistency). If your income swings, consider a percentage-based transfer so bigger paychecks save more automatically.

Do I need to make quarterly estimated payments?

If you expect to owe tax when you file (common for 1099 income), you may need to make quarterly payments to avoid penalties. Check IRS rules and talk with a tax pro about your situation.

Can I pay my taxes directly from this account?

Yes! You can transfer your saved funds to your checking account before paying the IRS/state via their official payment portals. You can also use Bill Pay in our digital banking platform; we can help you set it up. If you’re already using our digital banking platform, you can log in now to set up an account.

What if my income changes during the year?

Adjust your transfer amount or percentage. It’s smart to reassess mid year (and again in the fall) so your savings keep pace with your income and projected taxes.

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