Don’t Let September Sneak Up: Plan Now for Q3 Estimated Taxes

Although summer is still underway, now is a good time to begin planning for the next estimated tax payment deadline. For many taxpayers, the third quarter federal estimated tax payment is due September 15.

Estimated tax payments may apply if you receive income that is not fully covered by withholding, such as self-employment income, partnership or S corporation income, trust or estate income, rental income, investment income, capital gains, retirement income, or other taxable income. Making timely estimated payments can help reduce the risk of underpayment penalties and avoid a larger balance due when your tax return is filed.

Your tax picture may also change during the year. Business income, investment activity, bonus income, retirement distributions, property sales, changes in withholding, or other financial events can all affect whether your estimated tax payments should be reviewed before the next deadline.

If you expect income from a partnership, S corporation, trust, or estate, please provide your Schedule K-1s to our office as soon as you receive them. K-1 information is often needed to calculate taxable income, evaluate estimated payment needs, and prepare for year-end tax planning. Waiting until the last minute may limit the time available to review your overall tax position and identify potential planning opportunities.

California taxpayers should also be aware that state estimated tax rules and installment requirements may differ from federal rules. The amount due, if any, depends on each taxpayer’s individual circumstances.

We encourage clients to contact our office well before the September deadline if there have been changes to income, withholding, business activity, investment gains, or other tax-related items. The earlier we receive your information, the better positioned we are to assist with timely planning and help you stay on track.

Please contact DBMCPA with any questions regarding your estimated tax payments, K-1s, or 2026 tax planning needs.