June Estimated Tax Payment: Who Needs To Pay?

## June Estimated Tax Payment: Who Needs To Pay? Estimated taxes are quarterly payments you make directly to the IRS when taxes are not withheld from your income. If you are a W-2 employee, your employer handles this for you. But if you have side income, freelance work, gig earnings, rental income, or investment gains, you may need to pay estimated taxes yourself. ### Who Needs to Pay? You may need to make estimated tax payments if you expect to owe $1,000 or more in taxes for the year after subtracting withholding and credits. This commonly applies to: - Freelancers and self-employed individuals - People with significant side income - Gig workers (rideshare, delivery apps) - Those with rental property income - Anyone with substantial investment gains or dividends ### The June 15th Deadline The June estimated tax deadline is the second quarterly payment of the year. For 2026, this payment is due June 15th and covers income earned from April 1st through May 31st. Missing this deadline can result in underpayment penalties, even if you file your annual return on time. ### How to Calculate **Safe Harbor Method:** Pay 100% of last year total tax liability divided into four equal payments. If your AGI was over $150,000, pay 110% of last year tax. **Current Year Method:** Estimate your actual income for this year and pay 90% of what you expect to owe. ### How to Pay - IRS Direct Pay (online) - Electronic Federal Tax Payment System (EFTPS) - Form 1040-ES vouchers (by mail) Set calendar reminders: April 15, June 15, September 15, January 15. ### Common Mistakes - Waiting until April to deal with the full year obligation - Underestimating income from growing side businesses - Forgetting that investment gains count as taxable income - Not adjusting payments when income changes significantly