global Tax Missed a Quarterly Estimated Tax Payment? Here’s What to Do Next March 03, 2025 Missed a quarterly tax payment? Don’t panic—here’s what you can do to avoid penalties and stay on track with your taxes. Business owners and self-employed individuals…if you expect to owe more than $1,000 in federal income taxes for the year, you are on the hook for estimated taxes, which are due on a quarterly basis. Amounts vary by state and are generally lower than federal requirements. Did you miss a payment? Here’s what you should know. What are estimated taxes? Estimated taxes are periodic payments made to the IRS (and, in some cases, state tax agencies). These payments cover income tax and self-employment tax obligations, ensuring you don’t get hit with a large tax bill at year-end. What entities owe estimated taxes? Self-employed individualsBusiness owners, andIndividuals who do not have enough taxes withheld from their income Key deadlines Estimated taxes are due 4 times per year- April 15, June 15, September 15 and January 15. What happens if you miss a deadline? Make a Payment ASAP – The sooner you pay, the less interest and penalties you'll owe. You can easily make payments on the IRS website (Direct Pay or EFTPS) and most states also have electronic payment portals, so you don’t need to send a check via certified mail. These systems provide instant confirmation that your payment was received. Pay What You Can – Even if you can’t pay the full amount, making a partial payment will reduce interest charges. Set Up a Payment Plan – If you owe a larger amount, the IRS offers installment plans for balances under $50,000, reducing penalty rates to 0.25% per month. Request a Penalty Waiver – If you have a valid reason for missing a payment (due to a casualty, disaster or incapacitation), the IRS may waive your penalty. What are the penalties? The penalty is based on interest rates set by the IRS, which change quarterly.It applies even if you get a refund later when you file your return.The IRS calculates the penalty separately for each quarter where you underpaid. How to avoid missing future payments To avoid future issues, set reminders for key due dates in 2025: April 15, June 16, September 15, and January 15 (2026). Making electronic payments ensures peace of mind and keeps you compliant. If you have W-2 income, adjusting your withholdings via Form W-4 can help reduce the amount you need to pay in estimated taxes. By acting quickly and planning ahead, you can minimize penalties and keep your tax obligations on track.
