The IRS requires taxpayers to pay taxes throughout the year as income is earned or received. Most people do this through withholding from their paycheck, pension, or other income. However, if you don't have enough tax withheld, you may need to make estimated tax payments.
Estimated tax payments can help you avoid a large tax bill at filing time and may reduce the risk of underpayment penalties.
Do I Have to Make Estimated Tax Payments?
You may need to make estimated tax payments if:
- The taxes withheld from your income are not enough to cover your tax liability.
- You receive income that is not subject to withholding.
- You are self-employed.
- You operate as a sole proprietor.
- You are a partner in a partnership.
- You receive income from freelancing, contract work, investments, rents, or other non-wage sources.
Self-employed individuals generally need to make estimated tax payments throughout the year because taxes are not automatically withheld from their income.
Estimated payments may be required for both federal and state taxes.
How Do I Calculate My Estimated Tax Payments?
To determine how much you should pay toward your federal estimated taxes, complete Form 1040-ES, Estimated Tax for Individuals. The worksheet included with Form 1040-ES can help you estimate your expected income, deductions, credits, and tax liability for the year.
You can access the estimated tax calculator in the program by following these steps:
- Go to Federal
- Select Payments & Estimates
- Choose Vouchers for 2027 Estimated Tax Payments
- Select 1040 Estimated Payments Calculator
For state estimated tax calculations, refer to the instructions and worksheets provided by your state's taxing authority, as requirements vary by state.
How Do Estimated Payments Affect My Tax Return?
Taxes are generally paid through:
- Tax withholding, or
- Estimated tax payments
If you do not pay enough tax during the year through one of these methods, you may be subject to an underpayment penalty.
For federal taxes, you may be subject to a penalty if:
- You owe $1,000 or more when filing your return, and
- You did not make sufficient withholding payments or estimated tax payments during the year.
You may also be subject to penalties if required quarterly estimated payments were not made by their due dates.
State underpayment penalties vary because each state establishes its own rules and thresholds.
How Do I Print Payment Vouchers for Next Year's Estimated Taxes?
If you'd like to mail estimated tax payments for the following tax year, you can print payment vouchers through the program.
To access your estimated tax payment vouchers:
- Go to Federal
- Select Payments & Estimates
- Choose Vouchers for 2027 Estimated Tax Payments
- Select Vouchers for 2027 Estimated Tax Payments
The vouchers can be printed and mailed with your payments if you choose not to pay electronically.
What If I Entered Estimated Payments but Didn't Actually Make Them?
Only enter estimated tax payments that were actually paid.
If estimated payments are entered on your return but the IRS or your state tax agency has no record of receiving them, your return may be adjusted after processing. This could result in:
- A reduced refund
- Additional tax due
- Interest charges
- Underpayment or accuracy-related penalties
If you're unsure whether a payment was made, review your bank records, canceled checks, payment confirmations, or online tax account before entering the amount on your return.
Is a Balance Due Paid With Last Year's Tax Return Considered an Estimated Payment?
No.
A payment made to satisfy the balance due on a prior-year tax return is not considered an estimated tax payment.
For example, if you paid tax owed with your 2025 return that was filed in 2026, that payment is applied to your 2025 tax liability and should not be entered as a 2026 estimated tax payment.
Estimated tax payments are separate payments specifically intended for the current tax year.
Additional Information
For more information about estimated taxes and potential underpayment penalties, see:
- Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts
- IRS Estimated Taxes Guidance
- Form 1040-ES, Estimated Tax for Individuals