For many business owners, creators, and professionals, tax season doesn’t just happen in April — it happens four times a year.
If you’re self-employed or run a business, the IRS and California Franchise Tax Board expect you to pay taxes throughout the year, not just once at tax filing time. The next major date to keep in mind is:
📅 September 15, 2025 — the due date for your third-quarter estimated tax payment.
Failing to make this payment on time could mean penalties, interest, and a larger-than-expected bill next spring.
Why Quarterly Taxes Exist
Unlike W-2 employees, who have taxes withheld directly from their paychecks, self-employed individuals, freelancers, and business owners are responsible for paying taxes as income is earned. That’s why the IRS created the estimated tax system.
Think of it as “pay as you go.” If you wait until April to pay, the IRS sees that as underpaying throughout the year — and charges penalties
Who Needs to Pay Estimated Taxes?
You likely need to make quarterly payments if you:
- Are a YouTuber, TikToker, or Shopify/Amazon seller earning 1099 income
- Run a dental or medical practice (Dentist CPA clients, this means you)
- Own a local business like a salon, plumbing service, or equipment rental company
- Work as a freelancer, consultant, or filmmaker with untaxed income
Rule of thumb: If you expect to owe $1,000 or more in taxes for the year after credits and withholdings, you’re required to pay estimated taxes
How Much Should You Pay by September 15th?
The IRS gives two safe-harbor rules:
- Pay at least 90% of this year’s total tax liability, or
- Pay 100% of last year’s liability (110% if you earned over $150,000).
This ensures you avoid underpayment penalties.
💡 Example:
- A Los Angeles dentist earned $300,000 net profit in 2024. Taxes owed were $80,000. For 2025, unless their income drops significantly, they should aim to pay $20,000 each quarter.
- A YouTuber made $120,000 after expenses in 2024, with taxes of $30,000. They should pay $7,500 quarterly in 2025 unless income has shifted.
Why September 15th Matters More Than You Think
September 15th is not just “another tax deadline.” It’s the third payment of the year, and many taxpayers make the mistake of skipping it, thinking they can “catch up later.”
Here’s the catch:
- Even if you pay in full by April, the IRS and California can still charge penalties for missing interim payments.
- Missing September’s payment often means your January 15th payment doubles, straining cash flow right after the holidays.
Common Mistakes to Avoid
❌ Waiting until April — leads to penalties and big lump-sum bills
❌ Forgetting state payments — California requires separate estimated payments
❌ Paying too much — overpaying means the IRS holds your money interest-free
❌ Not adjusting for income changes — if your income jumped this year, last year’s safe harbor may not be enough
Frequently Asked Questions
Q: What if my income is irregular?
A: Creators and business owners often have fluctuating earnings. The IRS allows you to use the annualized income method to calculate fairer payments.
Q: Do I need to pay both federal and state?
A: Yes. If you’re in California, you need to submit two payments — one to the IRS and one to the California Franchise Tax Board.
Q: What if I can’t pay the full amount?
A: It’s better to pay something than nothing. Partial payments reduce penalties and interest.
Tax Planning Tips Before September 15th
✔️ Review income and expenses year-to-date — don’t just estimate blindly
✔️ Track deductions (home office, equipment, vehicle mileage, retirement contributions)
✔️ Consider “bunching” expenses into this quarter to lower taxable income
✔️ Set aside funds monthly so payments don’t feel overwhelming
✔️ Work with a CPA to fine-tune payments and avoid surprises
How Velin & Associates, Inc. Helps
At Velin & Associates, Inc., we specialize in helping:
- Dentists and medical professionals protect earnings and reduce overpayments
- Creators (YouTubers, TikTokers, filmmakers, online sellers) manage fluctuating income
- Small business owners streamline bookkeeping, payroll, and estimated taxes
Our approach ensures you:
- Pay the right amount — not more, not less
- Stay fully compliant with IRS and California laws
- Use tax planning strategies to keep more money in your pocket
- Eliminate stress with proactive, year-round guidance
Bottom Line
📅 Mark your calendar: September 15, 2025.
It’s more than just a date — it’s a chance to stay compliant, avoid penalties, and take control of your tax strategy.
Don’t wait until April to realize you’ve overpaid (or worse, underpaid). Let’s plan smart, together.
For more information about our tax planning services, contact us today: visit our website.
Velin & Associates, Inc
8159 Santa Monica Blvd STE 198/200 West Hollywood, CA 90046
323-902-1000
dmitriy@losangelescpa.org
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