Who must pay estimated taxes?

Who Must Pay Estimated Taxes?

You may need to make estimated tax payments during the year if both of the following apply:

1. You expect to owe at least $1,000 in tax for the year after subtracting your withholding and refundable credits.
2. You expect your withholding and credits to be less than the smaller of:
   • 90% of the tax shown on your current-year return, or
   • 100% of the tax shown on your prior-year return (provided that return covered all 12 months).

Higher-Income Taxpayers

If your adjusted gross income (AGI) from the prior year was more than:

• $150,000 (most filing statuses), or
• $75,000 (Married Filing Separately),

you generally must substitute 110% of your prior-year tax liability for the 100% rule above.

Estimated taxes are most commonly paid by:

• Self-employed individuals
• Independent contractors
• Sole proprietors
• Partners in partnerships
• S corporation shareholders
• Taxpayers with significant investment, rental, or other income not subject to withholding

If you're unsure whether estimated payments are necessary, completing the estimated tax section in the program can help you determine whether additional payments may be needed.

When Are Estimated Tax Payments Due?

For the 2026 tax year (returns filed in 2027), estimated tax payment due dates are:

If a due date falls on a weekend or federal holiday, the deadline is generally extended to the next business day.

How Much Should I Pay?

A common approach is to use the IRS safe harbor rule by basing your estimated payments on your prior year's tax liability.

For example:

• If you're making four equal payments, divide last year's tax liability by four.
• If you've missed an earlier payment and want to spread the remaining balance over three payments, divide the amount you intend to pay by three.

Keep in mind that your actual required payments may differ if your income changes significantly during the year. Adjusting your payments can help you avoid a large balance due or potential underpayment penalties when you file your return.

How Can I Make Estimated Tax Payments?

You have two options:

Pay Online

The fastest and easiest method is through the IRS online payment system:

• Visit the IRS Payments portal here and submit your estimated tax payment electronically.
• Payments can generally be made by bank account, debit card, credit card, or digital wallet options offered by the IRS.

Mail Payment Vouchers

You can also mail a check along with the appropriate estimated tax payment voucher for each quarter.

How Do I Print Estimated Tax Vouchers in the Program?

To create payment vouchers, navigate to:

1. Federal Section
2. Payments and Estimates
3. Vouchers for Next Year's Estimated Payments
4. Enter your desired payment amounts and select Continue

Afterward:

1. Go to Review/Print
2. Select Print/Save Return
3. Create a PDF copy of your return

Your estimated tax vouchers will be included in the PDF package.

How Do I Change My Estimated Payment Amounts?

If your income changes during the year, you can update your estimated payment amounts at any time.

Simply return to:

1. Federal Section
2. Payments and Estimates
3. Vouchers for Next Year's Estimated Payments

Update the amounts and continue through the section. Then create a new PDF from the Summary/Print area. Your updated payment vouchers will automatically appear in the revised PDF.

Important

You do not need to amend your tax return to change estimated payment amounts.

Estimated tax vouchers are simply a planning and reminder tool. They are designed to help you keep track of:

• Quarterly due dates
• Suggested payment amounts

If your income increases or decreases, you can make a different payment amount than what appears on the voucher. The IRS will apply the actual amount you send, regardless of the amount printed on the voucher.

What Happens If My Income Changes During the Year?

Many taxpayers experience changes in income due to:

• Self-employment earnings
• Freelance work
• Investments
• Rental properties
• Business ownership

If your income increases substantially, you may wish to increase future estimated payments to avoid an underpayment penalty. If income decreases, you may choose to reduce future payments.

Reviewing your tax situation periodically throughout the year can help prevent surprises at tax time.

For more information, please review this link: Estimated Taxes.