The Deadline Is June 16, 2025!

For many small business owners, self-employed individuals, and anyone who receives income not subject to withholding, estimated tax payments are a critical part of staying compliant—and avoiding costly penalties. As we approach the second quarter estimated payment deadline on June 16, 2025, now is the perfect time to review your situation and make sure you’re on track.

Who Needs to Make Estimated Tax Payments?

Estimated tax payments are typically required if you expect to owe $1,000 or more in taxes when your return is filed. This commonly applies to:

• Small business owners and freelancers
• Contractors and gig workers
• Investors with significant dividend or capital gains income
• Anyone with income not subject to withholding

Why Are Estimated Payments Important?

The IRS operates on a “pay-as-you-go” tax system. This means taxes must be paid as income is earned throughout the year, not just at tax time. Failing to pay enough through estimated payments and withholding can result in:

• Penalties and interest for underpayment
• Stress at tax filing time from an unexpectedly large bill

Key Dates for Estimated Tax Payments (2025)

How to Calculate Your Estimated Payment

There are a few ways to estimate what you owe:

• Use IRS Form 1040-ES, which includes a worksheet to help you calculate.
• Reference your prior year’s tax return for income, deductions, and credits.
• Factor in any major changes (new income sources, deductions, credits, etc.).

Tip: Many taxpayers aim to pay at least 100% of last year’s tax liability (or 110% for higher incomes) to avoid underpayment penalties.

Need Help? We’re Here!

Tax calculations can get complicated, especially if your income fluctuates or you’ve experienced big changes this year. If you need assistance calculating your Q2 estimated tax payment or want to discuss tax planning strategies to minimize your liability, reach out to our team. We’re here to help you stay compliant, avoid surprises, and keep more of what you earn.

Senior Accountant Jordan Wrobleski comments,

“Staying on top of estimated tax payments is one of the simplest ways to avoid surprises and penalties at tax time. If your income or deductions have changed, now’s the perfect time to review your strategy.”

References:

• IRS: Estimated Taxes
• IRS Form 1040-ES

Contact one of our experts today at (888) 388-1040 to schedule a tax checkup or get help with your estimated payment.