- The deadline for the first-quarter estimated tax for 2025 is April 15, which coincides with the federal tax due date for the majority of taxpayers.
- You might be required to make estimated tax payments on income from self-employment, rental properties, interest, dividends, or gig economy jobs.
- The “safe harbor” provision to evade late payment penalties involves submitting 90% of your 2025 taxes or 100% of your 2024 taxes if your adjusted gross income is below $150,000.
If you’re rushing to complete your tax filing, you might overlook another significant deadline on April 15: the first-quarter estimated tax deadline for 2025.
Quarterly payments generally pertain to income that does not have tax withholdings, like self-employment income, rental earnings, interest, dividends, or gig economy income. The IRS noted in a recent press release that retirees and investors often need to make such payments.
“The first-quarter deadline for 2025 might come as a surprise” if you are newly self-employed or have recently embarked on contract work, explained Misty Erickson, tax content manager at the National Association of Tax Professionals.
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Such individuals may face “sticker shock” when filing their 2025 taxes or risk future penalties, according to Erickson.
Generally, if you anticipate owing at least $1,000 for the current tax year, you are required to make quarterly payments, as indicated by the IRS.
The April 15 deadline pertains to income earned from January 1 to March 31. The subsequent quarterly due dates for 2025 are June 16, September 15, and January 15, 2026.
Missing a payment could lead to a penalty based on interest, which is compounded daily at the established interest rate.
Adhere to the ‘safe harbor’ guidelines
Generally, you can avoid incurring penalties from the IRS by adhering to the “safe harbor” guidelines, as previously explained by certified public accountant Brian Long, a senior tax advisor at Wealth Enhancement in Minneapolis, to CNBC.
To comply with the safe harbor provision, you must pay either 90% of your 2025 tax obligation or 100% of your 2024 taxes, whichever amount is lower.
If your adjusted gross income for 2024 was $150,000 or more, this threshold increases to 110%, which can be found on line 11 of Form 1040 from your 2024 tax return.
However, the safe harbor only shields a taxpayer from an IRS underpayment penalty. If you’re underpaid, you may still owe a balance for 2025, as experts indicate.
How to pay your quarterly taxes
The IRS provides “multiple options” for making estimated tax payments.
You can pay by mail, online using IRS Direct Pay or the Treasury Department’s Electronic Federal Tax Payment System, or through a debit card, credit card, or digital wallet.
Your IRS online account “simplifies the payment process” as it allows you to track pending transactions, review your history, and access other important tax filing details, according to the agency.
This online account facilitates correcting mistakes “sooner rather than later,” Erickson noted. “I’ve heard of situations where payments were misapplied, so this helps verify your submissions.”
If you choose to send your payment by mail, experts recommend using certified mail with a return receipt for proof of sending.
