Dealing with Uncle Sam—the IRS—isn’t exactly a walk in the park. Even if you have sort of gotten the hang of it, any life change can alter your understanding of taxes, and if you are not careful, you could end up doing something wrong or missing a payment. Now, if you have moved over to the freelance or self-employed side of the job aisle or anything where your money is immediately taxed – you need to make sure you know all there is about estimated tax, especially when you should have it paid up. That is why this handy-dandy all-things estimated tax guide is here, so you are never found wanting!
What are estimated tax payments?
What are estimated tax payments? Estimated tax payments are required, and periodic payments are made toward your tax liability. Basically, the IRS wants its money throughout the year instead of waiting for you to file your tax return. It’s all part of the government’s effort to keep current on tax payments. Good news—you can make estimated payments for the federal tax you owe in addition to other tax liabilities throughout the year. And who does this apply to? Typically, people who aren’t subject to withholding tax. (Remember, when you get your paycheck, deductions come in the form of federal withholding tax deductions.) That includes freelancers, contractors, and business owners.
Primarily, the goal is to make taxpayers pay taxes on income levels as earned instead of receiving a whopping bill when they get their 1040 into the IRS. Of course, the IRS isn’t going to play a cat-and-mouse game or anything. It simply requires payments for any federal income tax or self-employment tax that you will owe.
Who needs to pay estimated taxes?
- The person who works for themselves or owns their very own enterprise
- You are getting a little money on the side from some rental properties or are getting some interest dividends or gains from something.
- You expect to owe at least $1,000 in tax after accounting for your withholding and refundable credits.
- If you paid most of your taxes but you owe a little bit of money from that previous year!
If you fall into any of these buckets (or all four), you want to make sure you pay these throughout the year. Don’t get stuck with an achy-breaky bill on Tax Day.
Estimated tax payment due dates for 2025
Here are the estimated tax payment due dates for 2025:
- 1st Quarter Payment: April 15, 2025
- 2nd Quarter Payment: June 16, 2025
- 3rd Quarter Payment: September 15, 2025
- 4th Quarter Payment: January 15, 2026 (Note this is for the 2025 tax year)
The government is strict with its estimated payments. You’re going to want to make sure you pay them (or before) on these dates in question.
IRS schedule for 2025 estimated tax payments
Knowing the IRS estimated tax payment schedule can help take away that tax day dread! Here’s what you need to know:
- That payment due date has to be within an exact quarter of the year — January-March, April-May, June-August, and September-December.
- Something to remember — If the due date falls on a weekend or federal holiday, it is pushed to the next business day. Make sure you know those dates are ahead of time.
- Another thing to keep in mind: And, you are required to pay at least 90% of the taxes you owe this year or 100% of what you owed last year (you fall into a high-income category then it jumps to 110%) in order to avoid a penalty.
How to calculate estimated taxes
You can follow these instructions to calculate estimated taxes:
- How Much Money Rolled Into Your Account This Past Year: You want to add up everything from side hustle money to some dividends that paid out. Don’t miss a dime!
- Figure Out That Taxable Income: Now it’s time to subtract and credit what needs to come out of what you have!
- Determine your tax liability: Really comb over that IRS table to figure out what you actually need to pay.
- Divide your Estimate Tax Liability by Number of Quarterly Payments: Just as it sounds, take the amount you want to pay all year, divide it by 4, and you’re done!
- Make Adjustments: If there are any changes to your income – make some adjustments to the final amount you pay!

How to make estimated tax payments
Basically, once you have calculated your estimated tax payments, it is time to make said payments. There are plenty of ways to do it:
- Electronic Payments: The IRS allows you to pay online. You can use EFTPS or Direct Pay from the IRS to do so.
- Snail Mail: You can complete the 1040-ES for the given year, and mail in a check or money order to the treasury. Be sure to include a memo that states the year you are paying, along with the SSN of the Taxpayer it’s for.
- Card Payments: Alternative payment processors allow debit or credit card payments to the IRS. But look out for fees for the convenience.
The IRS has an answer for almost every scenario, so just use what works best for you!
Penalties for late estimated tax payments
To get off Uncle Sam’s bad side, the payments need to be made on time. Failure to do so ends up in penalties, and they are not good:
- Penalty: The bare minimum you should pay is 90% of the current year’s taxes and 100% of the previous year’s takes. If you do not do this there is going to be hell to pay in the form of stiff penalties! This penalty will most likely be 0.5% of your unpaid tax for each month or part of a month after the due date.
- Interest: The IRS does not play about those unpaid tax balances and will be taking interest every single month you don’t pay the piper!
- Stave off the Underpayment Penalty: Say you owe some balances on things like quarterly payments – if this is you – you really want to avoid underpaying your estimated taxes especially if your income was in flux during the year.
Staying on top of estimated 2025 tax payments
Stay ahead of your 2025 estimated tax payments with ease! Workhy’s expert tax services provide you with the tools, calculators, and personalized guidance you need to navigate taxes stress-free. Enjoy the peace of mind that comes with staying compliant. Start now with Workhy and take the first step toward tax clarity today!
