Tax
Estimated Tax Payments
Quarterly tax payments owners and corporations send in throughout the year to cover income and self-employment tax the IRS expects them to owe.
The federal system is pay-as-you-go. If you expect to owe more than $1,000 in tax on your personal return (or $500 for a C-corp), the IRS wants the money in four installments during the year, not in one lump payment at April 15.
Individuals, sole proprietors, LLC members, and S-corp shareholders use Form 1040-ES. The 2026 due dates are April 15, June 15, September 15, and January 15 of the following year. C-corps use Form 1120-W with due dates tied to the 4th, 6th, 9th, and 12th month of the corporate tax year.
Most owners rely on the safe harbor: pay in 100% of last year's total tax (110% if last year's AGI was over $150,000) and the IRS will not assess an underpayment penalty even if your final bill is much larger. States run parallel systems with their own forms and due dates.
Common pitfalls
- Skipping quarterlies because 'my CPA will file an extension' — an extension buys time to file, not to pay
- Basing estimates on prior-year profit when the current year is materially higher, then getting hit with a large April balance
- Forgetting the January 15 fourth-quarter payment because the holidays just ended — this is the most-missed installment
- Ignoring the state quarterly obligation, which often has different due dates and its own penalty regime
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