2025 Third-Quarter Estimated Tax Deadline Approaches Amid Complexities
The deadline for the third-quarter estimated tax payment for 2025 falls on September 15. Taxpayers should be aware that this deadline, like others in 2025, does not align with traditional calendar quarters, which can cause confusion and missed payments.
Tax Law Changes Impact Payment Calculations
Several tax breaks introduced under former President Trump’s legislation, sometimes referred to as the “big beautiful bill,” are applicable for the 2025 tax year. Experts warn that without adjusting paycheck withholdings accordingly, many taxpayers may inadvertently overpay their taxes through the end of the year.
“I don’t want them paying more taxes for Q3 and Q4 than they absolutely need to,” said Jim Guarino, a certified financial planner and CPA at Baker Newman Noyes in Massachusetts, highlighting the potential for overpayment.
Quarterly Estimated Tax Deadlines for 2025
- 1st quarter (Jan 1 – Mar 31): April 15
- 2nd quarter (Apr 1 – May 31): June 16
- 3rd quarter (Jun 1 – Aug 31): September 15
- 4th quarter (Sep 1 – Dec 31): January 15, 2026
These irregular periods, especially the shortened second quarter, require careful attention to avoid missed deadlines.
Safe Harbor Rules and Payment Strategies
The IRS offers safe harbor provisions to protect taxpayers from underpayment penalties. To qualify, taxpayers must remit at least 90% of their 2025 tax liability or 100% of their 2024 tax liability, whichever is lower. For taxpayers with adjusted gross income above $150,000 in 2024, the threshold increases to 110%. This income figure can be found on line 11 of the 2024 Form 1040.
However, these rules only shield against penalties and do not eliminate the possibility of owing additional taxes at year-end if payments are insufficient.
“There’s not a one-size-fits-all approach to estimated tax payments,” said Melanie Lauridsen, vice president of tax policy and advocacy at the American Institute of Certified Public Accountants. She recommends working with tax professionals to run accurate projections for 2025, ensuring appropriate payment amounts for the third and fourth quarters.
FinOracleAI — Market View
The approach of the third-quarter estimated tax deadline, combined with new tax breaks and irregular payment periods, introduces uncertainty for taxpayers and could lead to increased demand for tax advisory services. While the immediate market impact on financial sectors is limited, firms offering tax planning and accounting services may see heightened client engagement. Investors should monitor regulatory updates and taxpayer behavior for potential shifts in related service revenues.
Impact: neutral
