The Internal Revenue Service has issued updated guidance for taxpayers who are required to make quarterly estimated tax payments during the 2025 tax year. The new Form 1040-ES package includes payment vouchers, instructions, and online options that help individuals, small businesses, and retirees accurately and on time pay their estimated taxes.
The Internal Revenue Service released the 2025 Form 1040-ES to help taxpayers calculate and submit estimated tax payments throughout the year. These payments cover income not subject to automatic withholding, including self-employment earnings, dividends, pension distributions, and capital gains.
The IRS notes that the U.S. income tax system is based on “pay-as-you-go,” meaning taxpayers must pay enough tax as they earn or receive taxable income, rather than waiting until they file a tax return. The update ensures those making estimated tax payments have the proper forms and deadlines to stay compliant and avoid penalties.
Taxpayers can send payment vouchers by mail or use electronic options such as IRS Direct Pay, debit or credit card, or the Electronic Federal Tax Payment System. Electronic options are secure, process within two business days, and include a locked padlock icon and multifactor authentication for added protection.
The Internal Revenue Service requires taxpayers to make estimated tax payments if they expect to owe at least $1,000 in federal income tax for 2025 after accounting for withholding and refundable credits. This typically includes self-employed individuals, small business owners, investors with capital gains, and retirees with pension or dividend income not subject to withholding. Farmers, household employers, resident aliens, and citizens may also need to pay estimated taxes, depending on their income, deductions, and credits, under special rules.
Taxpayers can avoid an estimated tax penalty by reviewing their income and deductions each payment period to ensure they pay enough tax. Those who miss a due date can make larger payments before the next quarter to reduce or eliminate penalties. A tax professional can provide guidance if unusual circumstances or reasonable cause apply.
The 2025 Form 1040-ES package lists four quarterly estimated tax payment periods with due dates on April 15, June 16, September 15, 2025, and January 15, 2026. Taxpayers who file their 2025 tax return by February 2, 2026, and pay any balance due can skip the final payment. Those who expect to owe additional federal income tax should plan their payments carefully to avoid an estimated tax penalty.
Taxpayers can mail a payment voucher with a check or money order made payable to “United States Treasury” or use electronic options such as IRS Direct Pay, debit or credit card, or the Electronic Federal Tax Payment System. Electronic federal tax payment options are faster, include multifactor authentication for security, and confirm within two business days. Using these systems through a financial institution or mobile device helps ensure each payment period is completed on time.
Making estimated tax payments on time helps taxpayers avoid an estimated tax penalty or interest charges when they file their return. The IRS advises that even if earlier payments were missed, submitting a payment soon can reduce or eliminate penalties.
Penalties generally apply only if taxpayers fail to pay without reasonable cause or due to willful neglect. Those who expect to owe more because of changes in income, capital gains, or deductions should recalculate before the next quarter. Using IRS Direct Pay or the federal tax payment system allows for secure processing with a personal identification number and verification through a financial institution.
Taxpayers can also use the Tax Withholding Estimator to check if they are likely to owe additional tax or qualify for a refund when they file. Adjusting withholding or making extra payments throughout the tax year can help avoid shortfalls.
The IRS encourages taxpayers to review the updated Form 1040-ES instructions and set reminders before each due date. Setting up email notifications through the federal tax payment system can prevent missed payments.
Those using IRS Direct Pay or EFTPS should carefully verify their account information before authorizing a tax payment. Electronic payments typically clear within two business days and provide confirmation receipts. Taxpayers mailing vouchers should allow extra time for delivery.
For additional information, including examples and special rules for certain taxpayers, see IRS Publication 505, Tax Withholding and Estimated Tax, or visit the IRS Newsroom for updates throughout the year.
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