Upcoming Tax Deadline Reminder
The deadline for the second quarter’s estimated tax payments is on June 16th. The IRS has mentioned that submitting payments on time is crucial to avoid falling behind on your tax obligations.
Quarterly payments are typically required for income that doesn’t have tax withheld—this includes earnings from freelance work, self-employment, and gig economy jobs. Additionally, if you receive interest, dividends, capital gains, or rental income, those require quarterly payments too.
The U.S. tax system operates on a “pay-as-you-go” basis, which means that the IRS expects you to pay taxes as you earn your income. If tax is not withheld from your earnings, you are responsible for paying directly to the IRS.
Additional Information on Tax Payments
The upcoming quarterly tax deadlines for 2025 are April 15, June 15, September 15, and January 15, 2026. These dates don’t neatly align with calendar quarters, which can easily lead to missed deadlines.
Nathan Sevensta, a certified financial planner running Access Wealth Strategy in Artesia, New Mexico, noted that the June deadline often surprises people, especially those with fluctuating incomes like high earners or business owners. He mentioned that clients frequently overlook capital gains, side income, or large distributions that weren’t covered by withholding.
The IRS states that quarterly payments are applicable to individuals, sole proprietors, partners, and shareholders who expect to owe at least $1,000 in taxes for the current year. For businesses, that threshold is lower—set at $500.
Avoiding Penalties
Missing the June 16 deadline could lead to penalties, depending on the current interest rate and how much should have been paid. The IRS can assist in avoiding penalties for insufficient payments.
Typically, employer withholding spreads out tax payments over the year, while quarterly payments have specific deadlines. This discrepancy often leads to penalties, as noted by certified public accountant Korlett Dearden, who is the director of wealth management at Dearden Financial Services in Laurel, Maryland.
Understanding Safe Harbor Guidelines
Dearden also emphasized that adhering to safe harbor guidelines can protect you from penalties related to underpaid taxes. To comply with these rules, you need to pay at least 90% of your current year’s tax obligations—or 100% of your tax from the previous year.
If your adjusted gross income for 2024 exceeds $150,000, the requirement increases to 110%. You can refer to Form 1040 from your 2024 tax return for specific details.
However, keep in mind that safe harbor rules only prevent penalties for underpayment; if you fail to pay enough, you may face additional issues regarding your 2025 taxes, experts warn.
