15th January - Final US Estimated Tax Deadline
- David Tzimenakis
- 3 days ago
- 2 min read
Firstly, we’d like to wish all of our clients and readers a Happy New Year! Another year, and another new US tax season.
As many of us begin preparations for the new 2025 US tax filing year, a reminder today of the final 2025 US estimated tax deadline of 15th January 2026 (16th January in New Zealand).
For those who had a US tax liability on their 2024 US tax return, it is likely that estimated tax payments are required for the 2025 liability.
As a brief explainer about estimated tax, in most situations where a taxpayer has a liability on a tax return, the IRS expects that going forward (for at least the next US tax year) the estimated liability is paid in instalments throughout the year.
For the 2025 US tax year, our payment deadlines are:
15th April 2025 – First Estimated Tax Deadline for 2025 Tax Liability
15th June 2025 – Second Estimated Tax Deadline
15th September 2025 - Third Estimated Tax Deadline
15th January 2026 – Final Estimated Tax Deadline
15th April 2026 – Final due date for all remaining tax due to the IRS
Estimated tax is calculated on the assumption that if a tax liability exists one year, then a similar liability will exist the following year.
As an example, a taxpayer has a $1000 US tax liability for 2024. This would in most cases, mean a 2025 Estimated Tax liability also of $1000. This must then be paid in instalments as above.
In the case that the taxpayer’s 2025 US tax return is prepared, and they owed nothing, then the $1000 tax has been paid in instalments, is refunded.
In the case that the taxpayer doesn’t pay the estimated tax liability, and there is indeed $1000 owing on the 2025 return, an estimated tax penalty is imposed, increasing the liability slightly.
If however the estimated tax liability was not paid, and then upon completion of the taxpayer’s 2025 US tax return, no tax liability was owing, no penalty is imposed.
It is for these reasons above, that estimated tax is both optional and not optional at the same time!
For any questions, feel free to reach out to us – info@usatax.nz
