April 15 is the first-quarter estimated tax deadline, with penalties for missed payments
April 15 is the first-quarter estimated tax deadline for 2025, and taxpayers who owe estimated payments can face IRS penalties if they miss it.
April 15 is the first-quarter estimated tax deadline for 2025, a date that can catch new contractors, freelancers and other taxpayers off guard, according to a CNBC article republished by NBC 5 Dallas-Fort Worth on April 14, 2025.
Missing an estimated payment can trigger an IRS underpayment penalty. The article said the penalty is interest-based and compounds daily, which can increase the amount owed if a taxpayer does not pay on time.
Quarterly estimated payments generally apply to income that does not have tax withholding, including self-employment earnings, rental income, interest, dividends and gig-economy work, the article said. The IRS said retirees and investors frequently need to make these payments.
The article said taxpayers generally must make quarterly payments if they expect to owe at least $1,000 for the current tax year. The April 15 deadline covers earnings from Jan. 1 through March 31. The other 2025 due dates are June 16, Sept. 15 and Jan. 15, 2026.
Misty Erickson, tax content manager at the National Association of Tax Professionals, said the deadline can surprise people who are newly self-employed or who recently started contract work. She said some taxpayers may face sticker shock and future penalties if they do not account for the payment.
The article also said taxpayers can generally avoid IRS penalties by following safe-harbor rules, as explained by Brian Long, a certified public accountant and senior tax advisor at Wealth Enhancement in Minneapolis. Under that rule, a taxpayer must pay at least 90% of their 2025 tax liability or 100% of their 2024 taxes, whichever is smaller. The threshold rises to 110% if 2024 adjusted gross income was $150,000 or more.
Safe harbor only protects against an IRS underpayment penalty, not the full tax owed, the article said. For people making estimated payments, the IRS offers several methods, including mail, IRS Direct Pay, the Electronic Federal Tax Payment System, debit card, credit card and digital wallet payments.
The IRS online account can help taxpayers monitor pending transactions, review payment history and check filing information. Erickson said that can help people correct payment mistakes sooner and avoid problems if a payment is misapplied.
If a taxpayer mails a payment, the article said experts recommend certified mail with return receipt as proof. The next quarterly estimated tax deadlines are June 16, Sept. 15 and Jan. 15, 2026.
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