Estimated Taxes Explained: Form 1040-ES (Tax Year 2025)

This guide explains who must pay estimated taxes, how Form 1040-ES works, and when payments are due for tax year 2025.

What Are Estimated Taxes?

Estimated taxes are periodic payments made to the IRS during the tax year on income that is not subject to withholding. This commonly includes income from self-employment, freelance work, interest, dividends, rental income, and certain capital gains. The IRS overview of estimated tax rules is available in its Estimated Tax FAQs.

Who Must Pay Estimated Taxes?

You generally need to make estimated tax payments if you expect to owe tax when you file and your withholding and credits won’t be enough. For details, see the IRS guidance on 
figuring and paying estimated tax .

Estimated taxes are most common for:

• Self-employed individuals and freelancers
• Independent contractors
• Small business owners
• Gig economy workers
• Investors with significant non-withheld income

What Is Form 1040-ES?

Form 1040-ES, Estimated Tax for Individuals, is used to calculate estimated federal income tax liability, determine quarterly payment amounts, and submit payment vouchers when paying by mail.

The official package includes an estimated tax worksheet, four quarterly vouchers, and instructions. You can download the Form 1040-ES (2025 PDF) directly from the IRS.

Estimated Tax Payment Due Dates for 2025

Estimated taxes are generally paid in four installments. The IRS maintains an official schedule in its guidance on when to pay estimated tax
.

How to Pay Estimated Taxes

You can submit estimated payments using IRS-approved payment methods. Many taxpayers prefer paying online using IRS Direct Pay
(bank account transfer). The IRS also provides a broader overview of options on its pay-from-your-bank-account page.

• IRS Direct Pay (bank transfer)
• Your IRS online account
• Debit or credit card payments (via IRS-approved processors)
• Check or money order with the Form 1040-ES voucher

Avoiding Estimated Tax Penalties

If you don’t pay enough tax throughout the year, you may owe an underpayment penalty. The IRS references underpayment rules and safe-harbor concepts in resources like 
Publication 505 (Tax Withholding and Estimated Tax) .

In general, taxpayers avoid penalties by paying enough throughout the year (via withholding and/or estimated payments) and making payments on time.

Estimated Taxes vs. Withholding

Estimated taxes differ from payroll withholding. Withholding is deducted from wages by an employer, while estimated taxes are paid by the taxpayer during the year. Some taxpayers reduce or eliminate the need for estimated payments by adjusting withholding.

How Estimated Taxes Affect Your Form 1040

Estimated tax payments made during the year are reported on Form 1040 when you file your annual return. If you want a walkthrough of Form 1040 (including examples and downloads), see our Federal Form 1040 guide
.

Final Notes

Estimated taxes are a core compliance requirement for many self-employed taxpayers and households with significant non-withheld income. When in doubt, refer to the official
IRS Estimated Tax FAQs and the Form 1040-ES (2025 PDF) package to confirm calculations, vouchers, and payment options.