Quarterly Estimated Tax Payments: When and How Much
If you're self-employed, have significant investment income, or receive income that isn't subject to withholding, you may need to make quarterly estimated tax payments to avoid penalties.
Who Needs to Pay Estimated Taxes?
You generally need to make estimated tax payments if:
- You expect to owe at least $1,000 in tax after subtracting withholding and refundable credits
- Your withholding and refundable credits will be less than 90% of your current year's tax liability, or
- Your withholding and refundable credits will be less than 100% of your prior year's tax liability
2025 Payment Deadlines
- Q1: January 15, 2025
- Q2: April 15, 2025
- Q3: June 16, 2025
- Q4: September 15, 2025
How to Calculate Estimated Payments
To calculate your estimated tax, you'll need to estimate your adjusted gross income, taxable income, deductions, and credits for the year. You can use Form 1040-ES to help with these calculations.
Avoiding Penalties
To avoid underpayment penalties, make sure your estimated payments (plus withholding) equal at least 90% of your current year's tax or 100% of your prior year's tax (110% if your AGI exceeds $150,000).
Our team can help you calculate your estimated tax payments and set up a payment schedule that works for your cash flow.