US EditionDo you need to pay quarterly estimated taxes? A complete guide
UNITED STATES, JUL 9 – Freelancers and high earners must pay quarterly estimated taxes to avoid an 8% annual penalty on underpayments, with deadlines through January 2026, IRS says.
- The IRS deadline for the June 16, 2025, second-quarter estimated tax payment is approaching, covering April–May income, with missed payments risking penalties at about 8% annually.
- Taxpayers with untaxed income, including freelancers, self-employed individuals, businesses, and investors, usually owe quarterly estimated taxes to cover income not subject to withholding.
- The IRS calculates underpayment penalties and interest for each quarter, with an about 8% annual rate; the shortened Q2 period raises the risk of penalties.
- Taxpayers who underpay each quarter face penalties and interest, with an annual rate around 8%, increasing costs if payments are missed or delayed.
- Taxpayers can reduce penalty risk by using the Prior Year Method, paying 110% of last year's liability, or the Current Year Method, paying 90% of this year's projected tax, to stay compliant before the June 16 deadline.
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Do you need to pay quarterly estimated taxes? A complete guide | News Channel 3-12
Steve Heap // Shutterstock Do you need to pay quarterly estimated taxes? A complete guide TLDR: If you’re earning over $200,000 and have income beyond your regular paycheck—from stock options, restricted stock units, rental properties, side businesses, or investment gains—you likely need to make quarterly estimated tax payments. The IRS expects taxes to be paid as you earn, not all at once in April. Miss this, and you’ll likely face penalties e…
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Leaning Left2Leaning Right0Center22Last UpdatedBias Distribution92% Center
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