By Oliver Sanderson, Senior Correspondent
June 16, 2025
The Internal Revenue Service (IRS) is reminding taxpayers across the United States that today, June 16, marks the deadline for the second quarterly estimated tax payments for the 2025 tax year. This payment is crucial for individuals and businesses who earn income outside of traditional wage jobs, ensuring they stay compliant with tax regulations throughout the year.
Taxpayers are encouraged to ensure their estimated tax payments are submitted on time to avoid any penalties or interest charges. These payments are typically required for individuals who do not have sufficient tax withheld from their income through regular paycheck deductions, including freelancers, contractors, business owners, and retirees with substantial investment income.
Who Needs to Make These Payments?
Estimated quarterly tax payments are generally required for taxpayers whose income is not subject to withholding. This includes self-employed individuals, small business owners, freelancers, and people with income from sources like rental properties or investments. Those with significant income from dividends, capital gains, or retirement benefits may also be required to make these payments.
The IRS requires taxpayers to pay their taxes incrementally throughout the year. By submitting estimated payments every quarter, individuals and businesses can avoid a lump-sum tax payment at the end of the year, reducing financial stress during tax season.
“Taxpayers who earn income without tax withholding must stay ahead of their tax obligations by making estimated quarterly payments,” said an IRS spokesperson. “This ensures they avoid any large balances owed when they file their annual returns.”
How to Calculate the Right Payment
To determine how much to pay, the IRS offers a helpful worksheet and online tools that guide taxpayers in calculating the amount based on their income. Many taxpayers use their previous year’s tax return as a reference, adjusting it for any significant changes in income, deductions, or credits. For those unsure about the exact amount, it’s important to estimate as accurately as possible to avoid penalties for underpayment.
Taxpayers should aim to pay at least 90% of their total tax liability by the end of the year to avoid interest and penalties. However, overpaying may lead to an interest-free loan to the government, and any excess payment will be refunded during the next tax season.
How to Make the Payment
There are several ways taxpayers can submit their estimated payments to the IRS:
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IRS Direct Pay: This option allows users to pay directly from their bank account without incurring any fees. It is one of the fastest and most convenient methods.
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Electronic Federal Tax Payment System (EFTPS): This system is ideal for taxpayers who need to make more frequent payments, such as business owners or those who need to set up automatic payments.
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Check or Money Order: For those who prefer traditional methods, payments can be mailed to the IRS. However, electronic methods are recommended for faster processing.
Taxpayers must ensure they are using the correct payment method for the appropriate quarter, as submitting payments incorrectly could cause delays and additional complications.
Penalties for Missing the Deadline
For taxpayers who miss today’s June 16 deadline, penalties and interest may apply. The IRS imposes a penalty for late payments, calculated based on the amount of tax underpaid. Additionally, interest accrues on the unpaid amount at the federal short-term rate, plus 3%.
While taxpayers can request a penalty waiver if they believe their failure to make a payment was due to a reasonable cause, this is not guaranteed. The IRS expects taxpayers to make timely payments and provides ample resources to help them do so correctly.
In some cases, the IRS may waive penalties if taxpayers can demonstrate that their failure to pay was due to circumstances beyond their control, such as a serious illness or natural disaster. However, this is rare, and most taxpayers who miss the deadline will be subject to penalties.
How to Avoid Common Mistakes
To avoid issues with estimated tax payments, the IRS encourages taxpayers to carefully check their calculations and ensure they’re paying the correct amount for the right quarter. Common errors include:
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Miscalculating the estimated tax due based on inaccurate income projections
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Submitting payments for the wrong quarter, which can lead to delays
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Forgetting to adjust payments if their income changes during the year
Using IRS-approved tools, such as the online estimated tax calculator, can help reduce these errors and make the process smoother. Taxpayers should also review any significant life changes (e.g., a change in income or deductions) that might impact their quarterly payment amounts.
Future Deadlines for Estimated Tax Payments
After today’s deadline, taxpayers should be aware of the following upcoming estimated tax payment dates for the remainder of 2025:
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September 15: Third-quarter estimated tax payment is due.
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January 15, 2026: Fourth-quarter payment is due, covering any remaining tax obligations for the 2025 tax year.
Taxpayers can plan ahead and mark these dates on their calendars to ensure they stay on track throughout the year.
The IRS encourages taxpayers to remain vigilant about their estimated payments and to take advantage of the various online tools and resources it offers to avoid errors. Making these payments on time ensures that taxpayers avoid costly penalties and interest, keeping their financial situation in good standing.
