Estimated tax payments are quarterly prepayments to the IRS made by self-employed individuals, freelancers, retirees, and anyone with significant non-wage income. Due April 15, June 15, September 15, January 15 of the following year. Safe harbor: pay 100% of prior year's tax (110% if AGI exceeded $150K) or 90% of current year's expected tax. Underpayment by more than $1,000 triggers IRS interest charges. Use EFTPS.gov or Direct Pay for automatic scheduling. Self-employed individuals should set aside 25-30% of gross income for taxes (income + SE tax). Higher earners with quarterly RSU vests or large capital gains often need to make additional payments mid-quarter.
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Alternative Minimum Tax
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Estimated Tax
August 22, 2026 · Aditya Gupta
Tax
Related terms
Alternative Minimum Tax
Alternative Minimum Tax (AMT) is a parallel tax system designed to ensure high-income taxpayers pay a minimum. Calculate…
American Opportunity Credit
The American Opportunity Credit provides up to $2,500 per student per year for the first four years of…
Bunching Deductions
Bunching deductions is the strategy of concentrating itemizable expenses into alternating years to exceed the standard deduction in…
Charitable Contribution Deduction
Charitable contribution deductions allow taxpayers who itemize to deduct cash donations to qualified 501(c)(3) charities up to 60%…
Child Tax Credit
The Child Tax Credit (CTC) provides $2,000 per qualifying child under 17, with $1,600 refundable as the Additional…
Deductible Business Expense
A deductible business expense must be both 'ordinary' (common in your industry) and 'necessary' (helpful to the business).…
