Quarterly Estimated Taxes: Do You Owe by June 15? A Guide for High-Earning Professionals
Rohit Padmanabhan

Quarterly Estimated Taxes: Do You Owe by June 15? A Guide for High-Earning Professionals

 

We’re heading into June 15 — which means it’s time for many high-earning professionals to ask:
“Do I owe quarterly estimated taxes?”

 

If you’re a W-2 employee, it’s tempting to think this doesn’t apply to you. But for physicians with side practices, attorneys in partnerships, business owners, or tech professionals with equity or RSUs, quarterly tax payments often do apply — and failing to plan ahead can trigger IRS penalties and unexpected tax bills.

 

This post will help you understand:

  1. Why you might owe estimated taxes
  2. Common professions and income types that trigger this
  3. How to evaluate your situation
  4. What actions to take before June 15

 

1️⃣ Why Might You Owe Estimated Taxes?

The U.S. tax system is a “pay-as-you-go” system. Taxes are generally expected to be paid throughout the year, not just at filing time.

If you have income that doesn’t have automatic tax withholding (like a W-2 paycheck), you may be required to make estimated tax payments quarterly.

You generally must pay estimated taxes if:

  • You expect to owe at least $1,000 in tax for the year after subtracting withholding and credits AND

  • Your withholding doesn’t cover at least 90% of this year’s tax or 100% of last year’s tax (110% if your income was over $150,000).

The IRS due dates are:

  • April 15 (for Q1)

  • June 15 (for Q2 — that’s the one coming up now)

  • September 15 (for Q3)

  • January 15 (for Q4 of the prior tax year)

2️⃣ Professions and Income Types Most Likely to Owe

Certain careers and income types commonly lead to under-withholding and the need for estimated taxes.

 

  • Physicians
    1. Many doctors receive 1099 income from side practices, locum work, speaking, or consulting.
    2. This income typically comes with no tax withheld.

 

  • Attorneys in partnerships

    • Partners in a law firm usually receive K-1 income, not W-2s.

    • K-1s show pass-through earnings — again, no automatic withholding.

 

  • Business owners and entrepreneurs

    • S-Corp or LLC owners often take owner distributions or pass-through earnings.

    • If you’re running a profitable business, you’ll likely owe estimated taxes.

 

  • Tech professionals with equity

    • Restricted Stock Units (RSUs) create ordinary income when vested, but the company’s default withholding rate may be too low (typically 22%).

    • ISO or NSO stock exercises can create large tax obligations — often with no or insufficient withholding.

    • Capital gains on stock sales are not automatically withheld.

 

  • Other triggers

    • Rental property income

    • Investment income (interest, dividends, capital gains)

    • Side hustles or consulting work paid on 1099s

3️⃣ How to Evaluate If You Owe

Here’s a simple framework to check whether you should plan to pay estimated taxes for Q2 (due June 15):

     ✅ Step 1: Gather YTD income sources — including W-2, 1099s, RSU vests, K-1s, business income, and investment income.

     ✅ Step 2: Review your withholding to date (check paystubs, W-4 elections).

     ✅ Step 3: Project total 2025 income and compare:

    • Will your withholding cover 100% of 2024 tax liability?

    • Will it cover at least 90% of 2025 projected tax liability?

     ✅ Step 4: If not — calculate how much of an estimated tax payment to make for Q2.

Example Case Studies

  • Case 1: Tech Professional with RSUs
    • A senior engineer at a public tech company had $200k salary + $150k RSUs vesting in 2025. The company withheld at only 22% on RSU vests — but this put the engineer in the 35% bracket. Estimated tax payments were needed to avoid penalties.
  • Case 2: Law Partner
    • A partner at a midsize firm received $100k in Q1 K-1 distributions. They had no withholding on that income and projected significant earnings for the year. Working with their CPA, they scheduled estimated tax payments each quarter to stay penalty-free.
  • Case 3: Physician with Side Practice
    • A hospital-employed physician also ran a telemedicine side business, earning ~$75k on 1099s annually. Since no taxes were withheld from the 1099 income, quarterly estimated payments were necessary to cover the side income.

4️⃣ What to Do Before June 15

 

👉 Run a tax projection NOW

  • Use your CPA or financial advisor to do a mid-year projection.

  • Many online calculators (IRS Tax Withholding Estimator) can help estimate.

👉 Decide on a payment

  • If you owe, submit Form 1040-ES payment electronically via IRS Direct Pay or EFTPS.

👉 Adjust withholding if needed

  • You can also adjust your W-4 withholding now to help cover liability for the rest of the year (if you have W-2 income).

Conclusion: Take Action to Stay Penalty-Free

 

For many high-earning professionals, quarterly estimated taxes are an essential part of financial life — especially in careers with variable income, equity compensation, or pass-through earnings.

Missing the June 15 deadline can result in IRS penalties, so it’s smart to evaluate now:
     ✅ Are you on track for 2025?
     ✅ Do you need to make a Q2 payment?
     ✅ Should you adjust your tax strategy for the second half of the year?

 

👉 If you’re unsure, now is the time to schedule a mid-year tax review with your advisor or CPA.

 

 

 

 

 

Sources:

  • IRS Publication 505: Tax Withholding and Estimated Tax

  • WSJ Your Money Briefing, May 2025 episode: "How to Avoid IRS Estimated Tax Penalties"

  • IRS website: irs.gov/payments

Disclaimer: This post is for educational purposes only and is not tax or investment advice. Please consult your own tax advisor or financial professional for guidance specific to your situation.