Why this date matters
Mark your calendar reminders! Monday, September 15, is not just another day for many taxpayers. That’s the day to make third-quarter estimated tax payments to the IRS. If you earn income that’s not being tax-deducted automatically via a payroll check, this isn’t a deadline you’ll want to forget. Forgetting it could lead to hurtful penalties and extra stress at tax time.
What are estimated tax payments?
Think of estimated tax payments as your means of giving the IRS a little bit at a time. Instead of handing over a big sum in April, you give taxes in installments throughout the year.
Most people who work regular jobs don’t worry about this because their employers withhold taxes directly from their paychecks. But if you’re self-employed, freelancing, running a side hustle, or earning income from investments, rental property, or even prizes, you’re responsible for paying the IRS directly. That’s where estimated tax payments come in.
Who needs to pay?
Not every one of these quarterly payments needs to be made, but most of them do. According to tax laws:
- Self-employed people: freelancers, gig workers, and independent contractors who can anticipate owing $1,000 or more.
- Investors and landlords: owners of dividend stocks, rental houses, or capital gains.
- Companies: any company that owes $500 or more for the year.
- W-2 employees with low withholding: if your paycheck doesn’t withhold enough taxes, you can be required to fill in the gaps with estimated payments.
The one exception: if you owed zero taxes last year, you likely are in the clear this year as well.
How does the IRS decide the timing?
The IRS isn’t making these requests out of thin air. They break the year into four quarters. For 2025, the key dates are
- April 15, 2025 (for income Jan. 1 – March 31)
- June 16, 2025 (for income April 1 – May 31)
- Sept. 15, 2025 (for income June 1 – Aug. 31)
- Jan. 15, 2026 (for income Sept. 1 – Dec. 31)
This Monday’s deadline encompasses all the money you made last summer.
How to make your payment
The IRS makes it easy to pay, even if deciding that you owe makes you nervous. These are your options:
- Online: Pay in person on IRS.gov/payments.
- IRS2Go app: A convenient phone payment option.
- Mail: Send your payment with Form 1040-ES.
Don’t know how much to pay? The IRS offers a Tax Withholding Estimator that can help you figure it out. Others like to make the payment monthly instead of quarterly, just to make budgeting easier.
What if you miss the deadline?
If you don’t pay enough taxes throughout the year, the IRS will assess penalties against you. It’s similar to paying interest for not paying a bill on time. The good news is that the IRS occasionally offers relief. Retirees over age 62, people who recently became disabled, or victims of natural disasters, for example, may be exempt from penalties.
But for the rest of us, a missed payment usually just costs us a bit more down the road.
Why it’s important to stay on top of this
Estimated tax payments aren’t exactly a rollercoaster ride, maybe, but they can save you an April money migraine. By breaking up your tax bill into four payments, you won’t have to deal with a surprise lump sum and possible penalties. And smaller payments throughout the year will be easy to budget.
Last reminder
So if you’re in the group that has to make estimated payments, mark down a reminder, write it on a sticky note, or even ask Siri or Alexa to remind you. Monday, September 15, is the date. Pay on time, and future-you will thank you.
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