Do I need to make estimated payments?

The IRS states that if you had a tax liability for 2025, you may have to pay estimated tax for 2026.

General Rule:
You must pay estimated tax for 2026 if both of the following apply.

1. You expect to owe at least $1,000 in tax for 2026 after subtracting your withholding and refundable credits.
2. You expect your withholding and refundable credits to be less than the smaller of;
   • 90% of the tax to be shown on your 2026 tax return, or
   • 100% of the tax shown on your 2025 tax return (110% if your AGI for 2025 was more than $150,000 ($75,000 if Married Filing Separately)). Your 2025 tax return must cover all 12 months.

Sole proprietors, partners, and S corporation shareholders - You generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return. Use Form 1040-ES  to figure and pay your estimated tax. For additional information, refer to Publication 505 .