Quarterly Estimated Taxes 2025 — Don’t Miss Your Q1 Deadline

Written By Darren Hill

For most people, April 15 marks the big tax deadline. But for freelancers, contractors, and small business owners, it’s just the first deadline of the year.

If you expect to owe $1,000 or more in taxes, the IRS wants you to pay as you earn—and that starts with your Q1 estimated tax payment due April 15, 2025. Miss it, and you could face costly penalties before the year even gets rolling.

Q1 2025 Deadline at a Glance

  • Payment Due: Tuesday, April 15, 2025

  • Covers Income: January 1 – March 31, 2025

  • Who Must Pay:

    • Freelancers and gig workers (1099 income)

    • Contractors and small business owners

    • Landlords or investors with income not subject to withholding

How to Know if You Owe Estimated Taxes

You generally must make estimated payments if you expect to owe $1,000 or more in tax for the year (after credits and withholding).

Quick rule of thumb:

  • If no one is withholding taxes from your paychecks or payments → you likely owe.

  • W-2 employees rarely pay unless they have significant side hustle, investment, or rental income.

How to Calculate Q1 Estimated Taxes

IRS Safe Harbor Rule: Pay the smaller of:

  • 90% of your expected 2025 total tax, OR

  • 100% of your 2024 total tax (110% if AGI > $150,000).

💡 Pro Tip: Use January–March income and deductions to project your year. Filing your 2024 tax return first can help estimate your safe harbor baseline.

Penalties for Missing Q1 Payment

  • Failure-to-pay penalty: 0.5% per month of unpaid tax.

  • Interest: Compounded daily at the IRS-set rate (~8% in 2025).

Even a short delay can cost you—so paying on time matters.

Smart Planning Tips for Q1

  • File 2024 taxes early. That gives you numbers to calculate Q1 2025 more accurately.

  • Use separate bank account. Set aside 25–30% of income to avoid scrambling.

  • Automate with EFTPS. Avoid mailing delays and pay electronically.

  • Revisit deductions. Mileage, home office, and retirement contributions can shrink your Q1 payment.


  • 1. When is the Q1 2025 deadline?
    April 15, 2025.

    2. What period of income does Q1 cover?
    January 1 – March 31, 2025.

    3. What forms do I use to pay?
    Form 1040-ES if mailing; Direct Pay or EFTPS for electronic payments.

    4. What if I skip Q1 and catch up later?
    The IRS will still charge underpayment penalties for missed deadlines.

    5. How do side hustlers handle this?
    Track all income—even $500 gigs count. Estimate total and set aside a percentage as you go.

Q1 sets the tone for the entire tax year. If you pay on time, you stay penalty-free and keep cash flow steady. Don’t let the IRS surprise you.

Want personalized help calculating and reducing your Q1 estimated taxes?

Join our 2025 Tax Season Waitlist now: tbtxsolutions.com/join

Darren Hill
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