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The second-quarter estimated tax deadline is June 16 — and on-time funds can assist you keep away from “falling behind” in your steadiness, in keeping with the IRS.
Usually, quarterly payments apply to earnings with out tax withholdings, equivalent to earnings from self-employment, freelancing or gig financial system work. You might also owe funds for curiosity, dividends, capital features or rental earnings.
The U.S. tax system is “pay-as-you-go,” that means the IRS expects you to pay taxes as you earn earnings. In case your taxes are usually not withheld from earnings, it’s essential to pay the IRS instantly.
The quarterly tax deadlines for 2025 are April 15, June 16, Sept. 15 and Jan. 15, 2026. These dates do not line up with calendar quarters and so can simply be missed, consultants mentioned.
The second-quarter deadline specifically “typically sneaks up on individuals,” particularly larger earners or enterprise homeowners with irregular earnings, mentioned licensed monetary planner Nathan Sebesta, proprietor of Entry Wealth Methods in Artesia, New Mexico.
“I typically see shoppers neglect capital features, aspect earnings, or giant distributions that weren’t topic to withholding,” Sebesta mentioned.
Quarterly funds are due for people, sole proprietors, companions and S company shareholders who anticipate to owe not less than $1,000 for the present tax yr, in keeping with the IRS. The edge is $500 for firms.
Keep away from ‘underpayment penalties’
If you happen to skip the June 16 deadline, you could possibly see an interest-based penalty primarily based on the current interest rate and the way a lot you must have paid. That penalty compounds every day.
On-time quarterly funds can assist keep away from “doable underpayment penalties,” the IRS mentioned in an early June information launch.
Employer withholdings are thought of evenly paid all year long. By comparability, quarterly funds have set time frames and deadlines, mentioned CFP Laurette Dearden, director of wealth administration for Dearden Monetary Companies in Laurel, Maryland.
“This is the reason a penalty typically happens,” mentioned Dearden, who can also be a licensed public accountant.
Meet the secure harbor tips
You’ll be able to keep away from an underpayment penalty by following the secure harbor tips, in keeping with Dearden.
To fulfill the rule, it’s essential to pay not less than 90% of your 2025 tax legal responsibility or 100% of your 2024 taxes, whichever is smaller.
That threshold will increase to 110% in case your 2024 adjusted gross earnings was $150,000 or extra, which you will discover on line 11 of Form 1040 out of your 2024 tax return.
Nevertheless, the secure harbor protects you solely from underpayment penalties. If you happen to do not pay sufficient, you could possibly nonetheless owe taxes for 2025, consultants say.