For the 2026 tax year, the IRS generally requires estimated tax payments when you expect to owe at least $1,000 after withholding and refundable credits, and you expect withholding and credits to fall below the applicable safe-harbor amount. The usual 2026 payment dates are April 15, June 15, and September 15, 2026, with the final payment due January 15, 2027. Special rules and weekend or holiday adjustments can apply.

If you are self-employed, own a small business, earn rental income, or receive income without enough federal tax withholding, you may need to make estimated tax payments throughout the year. IRS Form 1040-ES helps taxpayers estimate how much tax they owe and make payments before filing their annual income tax return.

Understanding Form 1040-ES is especially important for freelancers, independent contractors, landlords, and small business owners who do not have an employer withholding enough tax from their earnings.

At AIM Financial, we help individuals and business owners prepare for tax season and understand their federal tax responsibilities. If you live in Grand Rapids, Kentwood, Wyoming, or elsewhere in West Michigan, learning how estimated taxes work can help you avoid unexpected tax bills and potential underpayment penalties.

What Is IRS Form 1040-ES?

Form 1040-ES is titled Estimated Tax for Individuals. It is used to calculate and pay estimated federal income taxes during the year.

Employees commonly have federal income tax withheld from their paychecks. However, many self-employed individuals and other taxpayers receive income without automatic withholding. Estimated tax payments help cover the tax that would otherwise be due when the annual return is filed.

You may need to consider estimated payments if you receive income from:

• Self-employment or a sole proprietorship.
• Freelance or independent contractor work.
• Rental properties.
• Interest and dividends.
• Certain taxable retirement or Social Security benefits.
• Other income that does not have enough federal tax withheld.

Estimated tax can cover both federal income tax and self-employment tax, when applicable.

You can find the current form and instructions on the IRS Form 1040-ES webpage.

Who Generally Needs to Pay Estimated Taxes?

For most individuals, estimated tax payments may be required when both of the following conditions apply:

1. You expect to owe at least $1,000 in federal tax for the current year after subtracting withholding and refundable credits.
2. You expect your withholding and refundable credits to be less than the smaller of 90% of the tax you expect to owe for the current year or 100% of the tax shown on your prior-year return.

The prior-year safe-harbor percentage generally increases to 110% for certain higher-income taxpayers whose adjusted gross income exceeded $150,000, or $75,000 for married taxpayers filing separately, on the prior-year return.

These are general rules. Special provisions may apply to farmers, fishers, and other taxpayers, and individual circumstances can affect the calculation.

Example: A Self-Employed Business Owner

Imagine a self-employed consultant in Grand Rapids expects to earn a profit of $75,000 during the year. The consultant has no employer withholding federal income tax from that business income.

After estimating income tax, self-employment tax, deductions, credits, and any withholding from other income, the consultant may determine that quarterly estimated payments are necessary.

The consultant should not simply divide business profit by four and assume that amount represents the correct tax payment. The calculation must account for the overall tax situation.

How to Complete Form 1040-ES in Plain English

Form 1040-ES includes a worksheet and payment instructions. The following steps explain the basic process.

Step 1: Estimate Your Total Income

Start by estimating the income you expect to receive during the entire tax year.

This may include wages, business profits, rental income, interest, dividends, capital gains, and other taxable income. If your income varies throughout the year, update your estimate when circumstances change.

For a self-employed individual, business records and a current profit-and-loss statement can help provide a realistic estimate.

Step 2: Estimate Your Deductions and Taxable Income

Next, estimate your expected adjustments to income, deductions, and taxable income.

Depending on your situation, these may include eligible business deductions, the deduction for part of your self-employment tax, retirement contributions, and other applicable tax benefits.

The correct deduction amount depends on current tax law and your eligibility. Avoid relying on last year’s figures without considering changes in income, expenses, or tax rules.

Step 3: Calculate Your Expected Tax

Use the applicable Form 1040-ES worksheet to estimate your federal income tax and any other taxes that apply, including self-employment tax.

Then account for expected withholding and refundable credits.

The worksheet helps determine whether you need estimated payments and how much may be required to meet the applicable payment threshold.

Step 4: Determine How Much to Pay

If estimated payments are required, calculate the amount needed for the year and determine the appropriate installments.

Many taxpayers can use the annualized-income method when income arrives unevenly during the year. This may be particularly useful for seasonal businesses, commission-based workers, or people who receive a large amount of income late in the year.

The rules for annualizing income are detailed, so review the IRS instructions or consult a tax professional before using this method.

Step 5: Make Your Payment

You can generally pay estimated taxes electronically through IRS payment services, including IRS Direct Pay or your IRS online account, where available. Other payment methods may also be available.

If you use a payment voucher from Form 1040-ES, follow the instructions for the applicable tax year and payment method.

Keep a record of each payment, including the amount, date, and confirmation information. You will need to account for estimated payments when preparing your annual federal income tax return.

For the official payment options, visit IRS.gov — Make a Payment.

When Are Quarterly Estimated Taxes Due?

Although commonly called quarterly taxes, estimated payments are based on four payment periods that are not all three months long.

For calendar-year individual taxpayers, the usual due dates for 2026 estimated taxes are:

Payment period	Usual due date
January 1–March 31, 2026	April 15, 2026
April 1–May 31, 2026	June 15, 2026
June 1–August 31, 2026	September 15, 2026
September 1–December 31, 2026	January 15, 2027

These dates are subject to applicable weekend, holiday, disaster-relief, and other special rules.

As of October 2026, the first three usual payment dates for 2026 have passed. If you have not made payments that were required earlier in the year, do not assume that paying everything in January will eliminate any potential underpayment penalty. Review your situation promptly.

There is generally an exception to the January installment if you file your 2026 federal income tax return by February 1, 2027, and pay the remaining tax due. However, this does not necessarily eliminate a penalty related to earlier missed installments.

For official information, review IRS Publication 505: Tax Withholding and Estimated Tax.

What Happens If You Do Not Pay Enough Estimated Tax?

Failing to pay enough tax throughout the year may result in an underpayment penalty, even if you pay the entire balance when you file your annual return.

The IRS generally considers when tax was paid, not just the total amount paid by the end of the year. This means that paying a large amount late in the year does not always make up for missing earlier required payments.

However, the rules include exceptions and methods for calculating the penalty. Your withholding, payment history, income timing, and other circumstances can affect the result.

If you discover that your estimated payments are too low, review your remaining payment obligations and consider adjusting your future payments. A tax professional can help determine the appropriate approach.

Common Form 1040-ES Mistakes to Avoid

Taxpayers can reduce problems by avoiding these common mistakes:

1. Underestimating total income: Include wages and other income as well as business earnings.
2. Ignoring self-employment tax: Business owners may owe both income tax and self-employment tax.
3. Missing payment dates: Track each payment period rather than waiting until tax season.
4. Using outdated estimates: Update calculations when income or expenses change.
5. Failing to record payments: Keep confirmation numbers and payment records.
6. Assuming an extension covers payment: An extension to file an annual return generally does not extend the time to pay tax owed.
7. Assuming four equal payments always work: Seasonal or uneven income may require a different calculation.

Good planning and accurate records can make estimated taxes easier to manage.

How AIM Financial Can Help With Estimated Tax Planning

Estimated tax calculations can be confusing, particularly when you have multiple sources of income or operate a business. You may need to account for business expenses, self-employment tax, withholding from a spouse’s or your own wages, deductions, credits, and prior-year tax liability.

AIM Financial can help individuals and business owners in Grand Rapids, Kentwood, Wyoming, and throughout West Michigan organize tax information and prepare for federal tax filing.

Whether you are a freelancer, independent contractor, landlord, or small business owner, understanding your estimated tax obligations can help you plan ahead and reduce the risk of an unexpected balance due.

Contact AIM Financial for assistance with tax preparation and estimated tax planning. Getting help reviewing your income, deductions, and payments can make it easier to understand what you may owe and prepare for upcoming tax deadlines.

Final Thoughts

IRS Form 1040-ES is an important tool for taxpayers who receive income without sufficient federal withholding. It helps you estimate your tax obligation, calculate payments, and make payments during the year instead of waiting until your annual return is due.

By reviewing your income regularly, keeping accurate records, and tracking payment dates, you can better manage your federal tax responsibilities.

For help understanding estimated taxes and preparing your federal income tax return in Grand Rapids and throughout West Michigan, contact AIM Financial to discuss your tax-preparation needs.