You didn’t pursue medicine because you were passionate about tax code.
Good Lord, I hope not. Otherwise, you’re a very special kind of weird.
Yet here you are, staring at tomorrow’s estimated tax deadline with the same gut-wrenching feeling as when you’re about to deliver particularly unwelcome news to a difficult patient.
You’re not alone. Most physicians would rather perform a complicated procedure than navigate the labyrinth of estimated tax payments.
But unlike medical procedures, tax compliance doesn’t require years of specialized training.
Just a little guidance from someone who speaks IRS fluently.
The Why and When of Estimated Taxes
Estimated taxes exist because our tax system operates on a “pay-as-you-go” basis.
You can Google that under “IRS” and “pay-as-you-go.” Sad but true.
While your employed colleagues have taxes withheld from each paycheck, you with your private practice income must make these payments yourself.
The IRS expects you to pay taxes in four quarterly installments:
✓ 1st Quarter: Due April 15, 2025 (yes, that’s tomorrow)
✓ 2nd Quarter: Due June 15, 2025
✓ 3rd Quarter: Due September 15, 2025
✓ 4th Quarter: Due January 15, 2026
Note that peculiar IRS math considers a “quarter” to be 3, 2, 3, and 4 months respectively.
The IRS calendar works differently than the one hanging in your office.
I have a plausible theory about why this is – let’s talk sometime. I’ll share it with you!
How to Calculate Your First 2025 Payment
Unlike diagnosing patients where every case is unique, the IRS offers a standardized approach:
The simplest approach is paying 25% of either:
1. 110% of your 2024 tax liability (if your AGI exceeded $150,000), OR
2. 100% of your 2024 tax liability (if your AGI was under $150,000)
For example, if your 2024 tax bill was $100,000 and your AGI exceeded $150,000, you’d need to pay $27,500 tomorrow ($110,000 ÷ 4).
The Current Year Method
If you expect 2025 to be significantly different from 2024:
Estimate your 2025 annual income
Calculate the tax on that amount
Divide by four
Subtract any withholdings from W-2 income (if applicable)
Payment Methods When You’re Down to the Wire
When you’re this close to the deadline, your options are:
IRS Direct Pay: The fastest method, with funds withdrawn directly from your bank account
That’s it. You can use others, but IRS Direct Pay has no processing fee, and you get a receipt and confirmation in the same session.
Just type IRS Direct Pay into your favorite search engine, and be sure to pick the official IRS site that has the big blue “Make a Payment” button.
Setting Up Systems for Future Payments
Treating tax payments like scheduled preventive care rather than emergency medicine will save you stress:
Calendar reminders: Set alerts 2 weeks before each deadline
Dedicated tax savings account: Transfer a percentage of each deposit every month
When You Can’t Make the Full Payment
If making tomorrow’s full payment would cause financial distress:
Pay what you can – Partial payment reduces penalties
If you can pay the balance before the next deadline in June, do it. For the same reason as above.
Remember: The IRS penalty for filing a return late is typically much higher than the penalty for paying late.
Always file on time, even if you can’t pay the full amount.
Need Expert Guidance?
Tax compliance should be a minor subplot in your professional story, not the main narrative.
At Owings LLC we specialize in physician finances, transforming tax chaos into clarity.
Contact us today for a consultation.
We’ll help you implement systems that make quarterly tax payments as routine as checking vital signs—allowing you to focus on what really matters: your patients and your practice.
I’m currently accepting new clients and offering comprehensive tax planning services that could save you thousands annually.
Consider this your referral to a tax specialist who speaks both “doctor” and “IRS” fluently.
Let’s schedule your financial check-up before tax season reaches critical condition.
Use the link I’m providing below now to choose the time to talk that is most convenient for you.
Imagine having a financial coach and compliance expert by your side, so that you can focus your professional clinical time where it belongs: on patient care.
Does that sound good?
Then reach out to me, and let’s talk: Free Tax Strategy Analysis