As we approach the middle of 2025, it's crucial for many individuals and businesses to remember a key tax deadline: June 16, 2025, for your Second Quarter Estimated Tax Payments. While the typical due date is June 15th, since June 15, 2025, falls on a Sunday, the deadline is extended to the next business day, Monday, June 16th.
This payment covers income earned from April 1, 2025, through May 31, 2025.
Who Needs to Pay Estimated Taxes?
Estimated taxes are designed to ensure that taxpayers pay income tax as they earn or receive income throughout the year, rather than facing a large tax bill at year-end. You generally need to make estimated tax payments if you expect to owe at least $1,000 in tax for 2025, after subtracting your withholding and refundable credits.
This typically applies to individuals who receive income not subject to withholding, such as:
- Self-employed individuals: Freelancers, independent contractors, gig workers, and small business owners.
- Individuals with significant investment income: Dividends, interest, and capital gains.
- Individuals with rental income.
- Those with taxable alimony.
- Individuals who do not have enough tax withheld from their wages.
Corporations generally need to pay estimated tax if they expect to owe $500 or more.
Why is it Important to Pay On Time?
Missing estimated tax deadlines or underpaying can lead to penalties and interest charges from the IRS. Paying your estimated taxes throughout the year helps you avoid a large, unexpected tax bill when you file your annual return.
How to Calculate Your Estimated Taxes
To calculate your estimated tax payments, you'll need to estimate your adjusted gross income, taxable income, taxes, deductions, and credits for the entire 2025 calendar year. The IRS provides Form 1040-ES, Estimated Tax for Individuals, which includes a worksheet to help you figure out your payments.
You can base your estimate on:
- 90% of the tax you expect to owe for the current year (2025).
- 100% of the total tax shown on your previous year's tax return (2024). For high-income taxpayers (Adjusted Gross Income for 2024 over $150,000, or $75,000 if married filing separately), this threshold is 110% of your prior year's tax.
If your income fluctuates throughout the year, you may be able to use the annualized income method to adjust your payments accordingly.
Ways to Make Your Payment
The IRS offers several convenient ways to make your estimated tax payments:
- IRS Online Account
- IRS Direct Pay (from your bank account)
-
- Credit/Debit Card or Digital Wallet (fees may apply)
-
- IRS2Go App
-
- Electronic Federal Tax Payment System (EFTPS) (required for corporations)
-
- By mail using Form 1040-ES voucher
How RSK TAX AND CONSULTING, LLC Can Help You
Navigating estimated tax payments can be complex, especially with varying income sources or changing financial situations. At RSK TAX AND CONSULTING, LLC, we are here to simplify this process for you. Our expert team can help you:
- Accurately calculate your second-quarter (and future) estimated tax payments to ensure you're meeting your obligations and avoiding penalties.
- Determine if you are required to pay estimated taxes.
- Strategize your tax planning for the remainder of 2025 to optimize your financial position.
- Provide guidance on the best payment methods for your individual or business needs.
Don't let tax deadlines cause unnecessary stress. Contact RSK TAX AND CONSULTING, LLC today to ensure your estimated tax payments are handled correctly and on time. Let us help you stay compliant and focus on what matters most to you.
