Estimated Tax Payments
Estimated tax payments are quarterly tax payments made by individuals and businesses who expect to owe $1,000 or more in tax after subtracting withholding and credits.
Exam Tip
Due dates: 4/15, 6/15, 9/15, 1/15. Safe harbor: pay 100% of prior year tax (110% if AGI > $150K). Penalty for underpayment calculated per quarter.
EA exam baseline: For the 2026–2027 SEE, use Tax Year 2025 and federal tax law through December 31, 2025. Later-year amounts below are explicitly labeled comparisons, not the default exam year. IRS SEE policy.
What are Estimated Tax Payments?
Taxpayers who do not have sufficient tax withheld (self-employed, investors, retirees) must make quarterly estimated payments to avoid underpayment penalties.
Due Dates
| Quarter | Period Covered | Due Date |
|---|---|---|
| Q1 | Jan 1 - Mar 31 | April 15 |
| Q2 | Apr 1 - May 31 | June 15 |
| Q3 | Jun 1 - Aug 31 | September 15 |
| Q4 | Sep 1 - Dec 31 | January 15 |
Safe Harbor Rules
| Situation | Safe Harbor |
|---|---|
| AGI ≤ $150K | Pay 100% of prior year tax |
| AGI > $150K | Pay 110% of prior year tax |
| Alternative | Pay 90% of current year tax |
Exam Alert
Due dates: 4/15, 6/15, 9/15, 1/15. Safe harbor: 100% of prior year tax (110% if AGI > $150K) OR 90% of current year tax. Penalty is calculated per quarter, not annually. Threshold: $1,000 for individuals, $500 for corporations.
2025 EA Exam Notes
For 2025 individuals, the regular installment dates are April 15, June 16, September 15, 2025, and January 15, 2026 (the June 15 weekend shifts that installment). The 110% prior-year safe harbor uses prior-year AGI above $150,000, or $75,000 if MFS.
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Self-Employment Tax
Self-employment tax is the combined Social Security (12.4%) and Medicare (2.9%) tax that self-employed individuals pay on net earnings from self-employment, totaling 15.3%.
Filing Status
Filing status is a classification that determines a taxpayer's tax rate schedule, standard deduction amount, and eligibility for certain credits and deductions, with five options: Single, MFJ, MFS, HOH, and QSS.
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