When estimates are required
If you expect to owe beyond withholding and credits, you likely need to make quarterly estimated tax payments.
Safe harbor rules
- Pay at least a percentage of last year’s tax liability or a portion of current‑year tax to avoid penalties.
- Higher thresholds can apply at higher incomes.
How to calculate
- Project income, deductions, and credits.
- Compute estimated tax and divide by four.
- Adjust during the year as results change.
How and where to pay
Use electronic payment portals for federal and state estimated taxes. Keep confirmations for your records.
Quarterly calendar
Mark due dates on a recurring calendar and set reminders to avoid penalties.