Missed Your 2025 Estimated Taxes?

Missed Your 2025 Estimated Taxes? Here’s What To Do Now.

If you’re self-employed or earning side-business income, estimated taxes can feel like one more chore on a long list. And if you missed one or more quarterly payments last year, you’re not alone — and it’s not too late to get back on track.

Your fourth-quarter estimated tax payment is due in a few days, on January 15th, 2026. Use it wisely to catchup – speak with your tax pro.

General Requirements for Estimated Taxes:

You may need to make estimated tax payments if you expect to owe at least $1,000 in tax for the year after considering withholding and credits, and you expect your withholding and credits to be less than the smaller of 90% of the current year’s tax liability or 100% of the prior year’s tax liability. If you are a higher-income individual with an Adjusted Gross Income over $150,000 ($75,000 if married filing separately) in the prior year, the 100% threshold becomes 110% of the prior year’s tax liability. Remember, these rules apply to income not subject to withholding, such as self-employment income, interest, dividends, capital gains, and rental income. Don’t stress the details, but consult with your tax pro – that’s why you have professionals on your team.

And do not forget your State’s estimated taxes, if you live in a state like New York.

Here’s what matters most right now as you prepare for tax filing:

1️⃣ Missing estimates doesn’t mean you’re in trouble — but you may owe interest

The IRS may apply small penalties or interest, depending on your earnings and timing.
The key is accurate reporting and planning going forward, not guessing or avoiding it.

2️⃣ Don’t overcorrect – avoid sending payments blindly
Many people send money “just to be safe.”

Instead, wait for accurate numbers once your books or income totals are clear — that prevents both under- and over-paying.
However, it is always advisable to pay now, if your cash flow allows – even if you overpay – and avoid the rush, additional penalties, and interest. Besides, the overpayment is still yours to use or claim.

3️⃣ Clean records help reduce your tax bill

Missed estimate penalties are often small — but missed deductions can be large.
Organizing your costs, mileage, subscriptions, and business expenses can also significantly affect what you owe.

4️⃣ The best move for 2026: set aside funds monthly, not quarterly

Clients who set aside (and pay estimated taxes or) money every month — even a small percentage —
tend to avoid penalties and reduce stress when quarterly payments come due. Remember, you can always make additional estimated tax payments. Find what works for you and use it consistently.

Bottom line:

If you missed estimated payments last year, don’t panic — get organized, report accurately, and plan ahead.

Smart recordkeeping today leads to better results when filing opens later in January.

👉If you’d like help reviewing your income and preparing for filing, I’m here to support you step by step.

Big care for small businesses and families.