Estimated Tax Payment Schedule for 2025
Taxpayers who earn income as a freelancer, 1099 contractor, or receive other types of non-wage income generally need to pay estimated tax payments every quarter to the IRS. Understanding the estimated tax payment schedule is crucial for individuals and businesses to avoid penalties for underpaid or late taxes.
There are several ways to keep up to date with your estimated taxes. However, working with a tax professional is usually the easiest way to ensure you fulfill your quarterly tax obligations correctly.
2025 Estimated Tax Payment Schedule
The following table outlines the 2025 due dates for estimated payments. If the date falls on a weekend or legal holiday, the due date is extended to the next business day.
|
PAYMENT PERIOD (2025) |
DUE DATE |
|
January 1 - March 31 |
April 15, 2025 |
|
April 1 - May 31 |
June 15, 2025 |
|
June 1 - August 31 |
September 15, 2025 |
|
September 1 - December 31 |
January 15, 2026 |
Who Must Make Estimated Tax Payments?
1099 workers, workers with side gigs, self-employed individuals, small businesses, W-2 workers who don't have enough withheld to cover their tax bill in full, and certain investors need to make estimated tax payments. Many people in these categories choose to work with a small business tax professional to ensure their tax obligations are met and avoid costly penalties for late or underpayments.
The following considerations apply to people in the categories mentioned above:
Self-Employed Individuals
Independent contractors, freelancers, and salaried workers with side hustles who expect to owe more than $1,000 in tax generally need to make estimated tax payments.
Pro tip: If you’re a contractor, knowing how much to set aside for 1099 taxes is an important step toward financial responsibility. This will help you ensure you’ve covered your bases even with fluctuating income.
Know Your State Tax Obligations
All but nine states (including Florida and Texas) tax self-employment income. Many states also have an estimated quarterly tax payment system. Familiarize yourself with your state tax obligations and keep up with the required payments to avoid penalties and fines.
Small Businesses
Just like freelance workers, sole proprietors, partnerships, and S corp shareholders who expect to owe at least $1,000 in tax must make estimated tax payments. Corporations need to make estimated income tax payments if they expect to owe at least $500 for the tax year.
W-2 Workers Who Don't Withhold Enough Tax
According to the IRS, you will need to pay estimated quarterly taxes if you expect to owe at least $1,000 in federal income taxes after accounting for withholding and refundable tax credits. Check that your employer is withholding enough tax to cover your federal obligations if you would prefer not to make estimated tax payments yourself.
Some Investors or Landlords
Investors and landlords may need to make estimated tax payments to cover their investment property income. Consult a tax professional if you own rental properties or other investments to determine your federal and state tax obligations and avoid an estimated tax penalty.
How to Calculate Your Estimated Income Tax Payments
Complete the following steps to calculate your quarterly tax obligations:
Calculate your expected adjusted gross income and taxable income plus taxes, deductions, and credits. You can use the figures from last year's tax return as a guide.
Use Form 1040-ES to calculate your estimated tax. If you estimated too high or too low in one quarter, you'll need to complete another Form 1040-ES to recalculate your estimated tax for the next quarter. It’s worth resubmitting your form as this will allow you to estimate your income as accurately as possible and avoid potential penalties.
Be sure to take into account any changes in your own situation and any recent changes in tax law when filling out Form 1040-ES. Many taxpayers get professional help with calculating their estimated quarterly taxes for peace of mind.
FAQs
Can I Make More than Four Payments During the Year?
Yes, you can pay your estimated tax payments in smaller, more frequent increments. For example, some taxpayers prefer to make smaller payments each month rather than larger payments each quarter. Either way, you must ensure you cover your tax liability for each quarter.
What Happens If I Forget to Pay My Estimated Quarterly Taxes?
The IRS charges penalties when not enough tax is paid throughout the year. This can include penalties for late or inadequate payments, even if you were due a refund for overpayment in other quarters.
There are several mitigating factors that could save you from a penalty from the IRS. These include being a victim of a casualty or disaster, or the death or serious illness of the taxpayer or a close relative. In these cases, you must establish a “reasonable cause” for not fulfilling your obligations.
How Can I Make Quarterly Taxes Easier?
If you receive self-employment income but are married to a W-2 worker whose taxes are automatically taken out of their paycheck, they may have had enough taxes withheld for both of you. Check your spouse’s W-4 form, which provides instructions to employers on how much tax to withhold from each paycheck. Otherwise, ask a tax professional for advice.
Don't Leave Your Quarterly Payments to Chance
Calculating quarterly tax payments can get complicated, and the consequences of underpayment can be serious for both individuals and small businesses. The best way to protect yourself from costly mistakes with untaxed income is to consult a tax professional.
An expert in tax planning can explain how much you owe and when you need to pay estimated taxes. As many businesses have discovered, it's much better to leave your tax affairs in the hands of professionals than to wait until tax season and face a larger-than-expected tax bill or penalties from the IRS.
