Your Taxes Are Talking Now Is the Time to Listen
Happy New Year.
Last week was all about closing the books on 2025.
This week is about protecting your cash flow and planning smarter for 2026.
An important deadline is approaching and there is also a planning opportunity most business owners miss.
January 15 is the due date for your fourth quarter 2025 estimated tax payment. Even more important, January is the best time to project your 2026 tax bill and avoid surprises later in the year.
Below is a simple breakdown to help you take action.
January 15 Deadline What You Need to Know
January 15 2026 is the due date for your Q4 2025 estimated tax payment. This is your final opportunity to correct any underpayment and avoid penalties.
This step also sets the foundation for accurate planning in 2026.
Tax Planning Questions Answered
Q1 I have not made my Q4 estimated payment yet What should I do now
Start by reviewing your 2025 numbers
Look at your 2025 Profit and Loss from January through December using clean books
Add up all estimated tax payments already made during 2025
Your goal is to have paid at least
100 percent of your 2025 tax liability
110 percent if your 2024 adjusted gross income exceeded 150000
This final payment allows you to true up your taxes and reduce the risk of penalties.
Q2 Why is projecting my 2026 taxes this early so important
Early projections turn taxes from a surprise expense into a managed business cost.
Planning now helps you
Budget accurately each quarter
Make informed decisions about hiring investing or expanding
Identify tax saving strategies while there is still time to implement them
Q3 How do I calculate my Q1 2026 estimated payment due April 15
Use your updated 2025 data as a starting point
Project your 2026 net income based on your business plans and pipeline
Apply your expected tax rate including income tax self employment tax and entity level tax
Divide the total by four to estimate quarterly payments
A safer approach is to use the prior year safe harbor rule. Paying 100 percent of your 2025 tax bill or 110 percent for higher incomes generally helps you avoid penalties even if your income increases.
Important Note for Real Estate Professionals and Investors
Your tax projections depend heavily on depreciation.
Depreciation is a non cash expense that can significantly reduce taxable income. Accurate projections must include current depreciation schedules for all properties.
If you are planning a property purchase renovation or new construction in 2026, a cost segregation study may accelerate depreciation and create meaningful tax savings. These strategies work best when discussed before closing.
If you have a potential 2026 transaction or major improvement planned, please let us know now so we can model the tax impact properly.
Your Immediate Timeline
This week finalize and submit your Q4 2025 estimated tax payment by January 15
Next step schedule your 2026 tax projection planning session
April 15 2026 is the due date for both your 2025 tax return and your first quarterly 2026 estimated tax payment
We Are Here to Help
Estimated payments and tax projections are among the highest value services we provide. When handled proactively, they reduce stress improve cash flow planning and provide financial clarity throughout the year.
Ready to lock in your 2026 plan
Schedule your tax projection now.
RSK Tax and Consulting LLC
