03/31/2026
Tax Tip✍️- Estimated Tax Payments 📅
Many may know April 15th is the day where annual taxes are due, but did you know that it also marks the due date for the first quarterly estimated tax payments for 2026?
Underpaying your taxes throughout the year can make you owe an underpayment of estimated tax by individuals penalty when it comes to filing your taxes.
Estimated tax is the method used to pay tax on income that is not subject to withholding (for example, earnings from self-employment, interest, dividends, rents, alimony, etc.). Use Form 1040-ES to figure and pay estimated taxes on time. (IRS, 2025)
To see the 2026 Form 1040-ES from the IRS visit:
https://www.irs.gov/pub/irs-prior/f1040es--2026.pdf
The underpayment penalty is calculated by the following factors:
- The amount of the underpayment
- The period when the underpayment was due and underpaid
- The published quarterly interest rates for underpayments
To learn more about the interest rates for underpayments visit:
https://www.irs.gov/payments/quarterly-interest-rates
An individual may avoid penalties if they owe less than $1,000 or paid at least 90% of the tax shown on the return for the taxable year or 100% of the tax shown on the return for the prior year, whichever amount is less. (IRS, 2025)
Reference
1. Internal Revenue Service. Underpayment of Estimated Tax by Individuals Penalty, Oct. 21, 2025. https://www.irs.gov/payments/underpayment-of-estimated-tax-by-individuals-penalty
Contact us if you have any questions,
A TIFFANY TAX
Phone: 210-850-7736; Email: [email protected]
https://atiffanytax.com/our-services
