If you’re self-employed, run a small business, or have income not subject to withholding, the IRS expects you to make quarterly estimated tax payments. The next deadline — September 15, 2025 — is just around the corner, and now is the time to prepare.
1. What Are Estimated Tax Payments?
Quarterly Pre-Payments: These are payments toward your income tax, self-employment tax, and sometimes state taxes.
Who Needs to Pay: Generally, anyone expecting to owe at least $1,000 in taxes after withholdings must pay quarterly estimates.
2. How to Know If You’re on Track
Review Q1 & Q2 Payments: Compare the total paid so far with your projected annual tax liability.
Factor in Recent Changes: Higher income, new clients, or extra revenue streams may mean your previous estimates are too low.
Use the Safe Harbor Rule: Pay 100% of last year’s tax (110% for high earners) to avoid penalties, even if your income increases.
3. How to Calculate Your Q3 Payment
Step 1: Estimate your total 2025 income.
Step 2: Subtract deductions and credits to determine taxable income.
Step 3: Apply your tax rate to estimate annual liability.
Step 4: Divide by four, then subtract what you’ve already paid in Q1 and Q2.
4. Payment Options
IRS Direct Pay: Free and fast, directly from your bank account.
EFTPS (Electronic Federal Tax Payment System): Great for recurring or scheduled payments.
Check or Money Order: Slower, but still accepted — just make sure it’s postmarked by September 15.
September’s deadline might feel far off, but a quick check-in now can prevent penalty fees and keep you in good standing with the IRS. Take a few minutes this August to review your numbers, make any necessary adjustments, and schedule your payment — your future self will thank you. If all of this overwhelms you or you need help organizing your business for what’s to come, be sure to reach out to ShoreSoure Business Solutions!
