Tax payment for self-employed individuals is approaching its deadline.
Paying Your Estimated Taxes: A Quick Guide
Hey there! If you're earning income outside the usual paycheck, it's time to talk about estimated taxes. And guess what? The next payment is just around the corner.
Let's break down the dates you need to be aware of. April 15 is the first due date, June 16 is the second, followed by Sept. 15, and finally, Jan. 15 the following year. However, since June 15 falls on a Sunday this year, the due date is moved to June 16.
In the U.S., we have a pay-as-you-go tax system. Most employees have taxes withheld from their paychecks. But if you're self-employed, you need to manage your own tax payments. If you skip the estimated payments and wait for the tax deadline, you might face penalties and interest.
**So, what are estimated taxes? **
Estimated taxes are charged four times a year for any taxable income you earned during that period that wasn't subject to withholding from the federal government. In simpler terms, if you receive income that has no taxes taken out, you're responsible for setting aside funds to cover your tax bill throughout the year.
April 15, 2025
Typical income sources that aren't subject to withholding and may require estimated tax payments include self-employment earnings, side hustle income, interest, dividends, capital gains, prizes, rents, unemployment compensation, and social security benefits in certain cases.
Jan. 1 through March 31, 2025
**Who needs to pay estimated taxes? **
You'll have to make estimated tax payments if you're expecting to owe more than $1,000 in taxes for the year, taking into account any withholding you paid or refundable credits you're eligible for. Special rules apply for farmers and fishermen.
June 16, 2025
The IRS encourages taxpayers to pay as they earn. Penalties and interest usually apply for underpayments and late payments. However, the IRS provides safe harbor guidelines to help you avoid these penalties even if you're not exactly sure about your annual income.
April 1 through May 31, 2025
For example, let's say you've earned self-employment income in 2025. As long as you make estimated payments that amount to 90% of your total 2025 tax bill by the deadlines, you won't face penalties or interest. Another safe harbor option is to pay 100% of your 2024 tax bill by the deadlines to protect yourself from underpayment penalties.
There's an exception for high earners – those making $150,000 or more if single or married filing jointly, or $75,000 if married filing separately in 2025 – who need to pay 110% of the previous year's tax liability to meet the safe harbor.
Sept. 15, 2025
Payment Deadlines for 2025:
June 1 through Aug. 31, 2025
Here are the payment deadlines for 2025:
| Estimated tax payment deadlines for 2025 | For income received in this time period || --- | --- || April 15, 2025 | Jan. 1 through March 31, 2025 || June 16, 2025 | April 1 through May 31, 2025 || Sept. 15, 2025 | June 1 through Aug. 31, 2025 || Jan. 15, 2026 | Sept. 1 through Dec. 31, 2025 |
Jan. 15, 2026
If you need assistance managing your finances, our AdvisorMatch platform can connect you with a Certified Financial Planner (CFP) to help you reach your goals.
Sept. 1 through Dec. 31, 2025
To determine the amount to pay, refer to Form 1040-ES for guidance on calculating estimated taxes and providing vouchers for payments by check or money order. You can choose the "100 percent of the previous year's tax bill" safe harbor option by looking at your tax return from the previous year and making estimated payments that add up to the total tax owed for that year.
For high earners, defined as those making $150,000 or more if single or married filing jointly, or $75,000 if married filing separately in 2025, you must pay 110 percent of the previous year's tax liability to meet the safe harbor.
If you opt for the "90 percent of this year's tax bill" safe harbor, you might use your previous year's tax return as a reference to calculate your tax obligation. Compare the income claimed and deductions taken on the previous year's federal tax return to assess their comparability in the current year.
Some businesses are seasonal, so it's wise to pay the tax as you earn income. In this situation, you'd follow the annualized income installment method, which can be found in IRS Publication 505.
Once you've determined the amount to pay, the IRS accepts your money through various means, such as direct payment from your bank account, the IRS2Go mobile app, payment with debit or credit card, the Electronic Federal Tax Payment System, same-day wire through your bank, or cash at a participating retail establishment. Details on making payments can be found on the IRS website.
If you live in an area affected by a natural disaster, keep in mind that the IRS may have postponed the due dates for estimated tax payments. A list of such situations can be found on the IRS website.
If you're self-employed or have income not subject to withholding, you're responsible for making regular estimated tax payments. You'll need to pay estimated taxes for any taxable income you earned during the quarter that wasn't subject to federal government withholding.
