𝗘𝘀𝘁𝗶𝗺𝗮𝘁𝗲𝗱 𝗧𝗮𝘅 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀: 𝗛𝗼𝘄 𝗧𝗵𝗲𝘆 𝗪𝗼𝗿𝗸

Now that you have filed your 2024 Income Tax Return and liability, its time to estimating income and estimated tax payments for 2025.

If you’re self-employed, a freelancer, or earn income without sufficient withholding (like investment or rental income), you may need to make estimated tax payments.

The IRS requires quarterly estimated payments under the following safe harbor components:

• Expect to owe $1,000+ in federal taxes (Corporations also have an obligation if they expect to owe at least $500)
• Safe Harbor 90% of your tax liability for this year, or 100% of your liability last year, whichever is smaller (threshold is 110% if your AGI last year was more than $150,000, or $75,000 for married filing separately)

You can either base your payments on last year’s taxes or annualize if your income fluctuates. Missing a deadline can lead to penalties—so mark your calendar:

April 15, 2025

June 15, 2025

September 15, 2025

January 15, 2026

Most states follow the same regulation.

Do you review your tax position quarterly or wait until year-end?  Email me and we can walk through your scenario.