WASHINGTON, D.C. — The Internal Revenue Service (IRS) is reminding self-employed individuals, retirees, investors, businesses, and corporations that April 15 is the deadline for first quarter estimated tax payments for tax year 2025.
Federal income taxes operate on a pay-as-you-go system, requiring individuals without tax withholding to make payments on income as it is earned. While many taxpayers fulfill this obligation through paycheck, pension, or Social Security withholdings, others—including the self-employed and gig economy workers—must calculate and pay estimated taxes quarterly.
The IRS advises taxpayers to include all earned income, such as part-time work or side jobs, in their calculations. Income sources like interest, dividends, capital gains, and rental income, typically not subject to withholding, should also be accounted for to avoid penalties.
Exceptions apply to certain groups, including farmers and fishers, recent retirees, individuals with disabilities, and those with irregular income. Taxpayers impacted by disasters or terrorist attacks may also qualify for relief.
The IRS emphasizes that timely payments not only prevent penalties but also ensure taxpayers meet their federal tax responsibilities.
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