If you own a business, managing taxes can be difficult. The 2025 deadlines for 1st and 2nd quarter were April 15, 2025 and June 16, 2025. Now that we’ve passed those estimate deadlines, you may be thinking, “I haven’t paid anything for 1st or 2nd quarter” or, “I think I made a 1st quarter payment, but I don’t think I paid anything for 2nd quarter.” What should you do now? Let’s dive into this issue:

  • If you miss a quarterly payment, or underpay your tax liability, the IRS will assess an underpayment penalty along with interest on the amount due. This penalty is calculated based on the tax shown on your tax return filed before April 15th of the following year. The penalty varies based on how much you underpaid, the period in which it was due, and the interest rate published by the IRS. (See Understanding Quarterly Taxes for how to calculate estimated tax penalties).
  • If you haven’t paid your quarterly estimates at the end of the year, you may find you owe a significant lump sum of income tax when filing your tax return. This can be a considerable financial burden. Paying your quarterly estimates can potentially help you avoid that large tax bill at the end of the year.
  • So far, we’ve only discussed the federal tax implications of not paying your quarterly estimates. In addition to federal taxes being owed quarterly, if you live in a state that taxes income, you will also need to ensure you make quarterly estimated tax payments to the state as well. As an over the road truck driver, you should only be taxed in the state you live in, not in every state you deliver loads to.
  • If you miss a payment or underpay your estimate, don’t panic. If you start saving your income, you can get back on track. You will still have an underpayment penalty if you miss or underpay any quarterly payment. However, you can significantly reduce the amount in tax, penalties, and interest you owe when you file your annual tax return, if you make additional payments during the year. You can make these additional estimate payments at any time. You can also make larger quarter payments to get back on track if you missed any previous quarter payments.

Paying your quarterly estimated tax payments is crucial. Saving your income can help you prepare for these estimates. If you miss a payment, be proactive. Make a payment as soon as you’re able. This will reduce your tax bill and any penalties at the end of the year.

Our Team of Professionals Can Help
We’re here to guide you through complex tax matters, so you can keep more of what you earn. We want to ensure you take every deduction you’re eligible for and avoid paying a dollar more than necessary.

If you have questions about your quarterly estimated payments, or anything else related to your self-employed taxes, contact our team today.