Happy New Year! Your Guide to Estimated Taxes
- Shelley Morales
- Dec 31, 2025
- 2 min read
Updated: Jan 13
HAPPY NEW YEAR!!! Here's your quarterly reminder: make sure to pay estimated taxes each year to prevent underpayment penalties from the IRS.
Understanding Estimated Taxes
By now, you should have either had sufficient taxes withheld from your paycheck or paid enough in estimated taxes to cover your expected tax balance. If you’re unsure due to changes in your income, contact us right away to learn about IRS Safe Harbor rules. These rules might help you avoid underpayment penalties, but you need to act quickly as the deadline is fast approaching.
Important Deadlines
Jan 15th - Final Estimated Payment
This date is crucial! Make sure you have your final estimated payment in by then. Missing this deadline can lead to unnecessary penalties.
Why Estimated Taxes Matter
Estimated taxes are essential for anyone who earns income that isn't subject to withholding. This includes self-employed individuals, freelancers, and those with investment income. If you fall into any of these categories, it's vital to stay on top of your estimated tax payments.
How to Calculate Your Estimated Taxes
Calculating your estimated taxes can seem daunting, but it doesn't have to be. Start by estimating your total income for the year. Then, determine your deductions and credits. This will give you a clearer picture of your taxable income.
Once you have that, apply the current tax rates to find out how much you owe. Remember, you can always reach out to us for assistance! We’re here to help you navigate this process.
Avoiding Underpayment Penalties
The IRS imposes penalties for underpayment, which can add up quickly. To avoid these penalties, ensure you pay at least 90% of your current year’s tax liability or 100% of the previous year’s tax liability, whichever is less.
If you’re unsure whether you’ve prepaid enough to the IRS to avoid underpayment penalties, contact us today! We can help you assess your situation and make necessary adjustments.
The Benefits of Working with a Financial Partner
Having a financial partner like Hometown Accountant can make a world of difference. We help you streamline operations, optimize finances, and achieve efficiency. Our friendly and accessible approach ensures that you feel supported every step of the way.
Get in Touch!
If you have questions or need assistance, don’t hesitate to reach out. We’re just a call or text away!
Shelley H. Morales is your Hometown Accountant!
352-358-1413 (text/call)
By staying proactive about your estimated taxes, you can avoid penalties and focus on what truly matters—growing your business! Let’s make this year a successful one together!
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