Estimated tax payments during the year
Updated: 2026
If income is not subject to withholding, such as 1099 / self-employed income, rent, interest, or dividends, estimated tax payments may need to be discussed.
When this becomes relevant
Estimated tax is a way to pay tax during the year on income that is not usually subject to automatic withholding. This often applies to self-employed income, 1099 payments, rental income, interest, dividends, and some other income.
If you owed a large balance last year or your income increased this year, it is better to discuss the issue before filing season, not only when the return is being prepared.
What to prepare
Useful records include current-year income, expected expenses, estimated payments already made, W-2 withholding, and a copy of the prior-year return.
If payments were made through IRS Direct Pay, EFTPS, a state tax agency, or by applying a prior-year refund, keep confirmations and payment dates.
Why this is not only an April issue
For 1099 / Schedule C clients, the final tax may include not only income tax but also self-employment tax. Planning during the year can be more useful than trying to solve everything at filing time.
We can help identify what information is needed to review the situation, but exact amounts depend on the facts of the year, income, expenses, withholding, and family situation.
What to avoid
Avoid guessing payments without understanding income and expenses. Also keep proof of payments already made, because those confirmations may be needed when preparing the return.