The Internal Revenue Service is reminding taxpayers that the second quarter estimated tax payment deadline is Monday, June 16.
This requirement applies to individuals and entities receiving income not typically subject to withholding, such as income from self-employment, gig work, interest, dividends, capital gains, rental income, or 1099 earnings. Those who fall into these categories — including freelancers, retirees, investors, businesses, and corporations — may need to make estimated payments throughout the year.
Paying on time helps taxpayers avoid falling behind on taxes and incurring potential underpayment penalties.
Who Should Pay Estimated Taxes?
The IRS says estimated tax payments are generally required if:
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Individuals, such as sole proprietors, partners, or S corporation shareholders, expect to owe $1,000 or more in taxes for the year.
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Corporations expect to owe $500 or more in taxes. (See IRS Publication 542 for details.)
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People earning income through gig work or freelance services — even if paid through platforms that issue a Form 1099-K — need to report that income using all relevant tax documents.
Payment Methods
The IRS encourages taxpayers to pay electronically, which is the fastest and most secure method. Available options include:
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IRS Online Account access
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Direct Pay using a checking or savings account
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Credit/debit cards or digital wallets (fees may apply)
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The Electronic Federal Tax Payment System (EFTPS)
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The IRS2Go mobile app
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Mailing a check or money order with Form 1040-ES, made payable to “United States Treasury”
Corporations are required to use electronic funds transfer, typically through EFTPS, to make all federal tax deposits, including estimated tax payments.
This article, “IRS Reminds Taxpayers: Estimated Tax Payment Due June 16” was first published on Small Business Trends