Quarterly Estimated Taxes: A Guide for Utah Owners and Investors

If a meaningful share of your income arrives without tax withheld — business profits, investment gains, K-1 distributions, or self-employment income — the IRS still expects to be paid throughout the year, not just in April. That is what quarterly estimated taxes are for. Who this affects. Business owners, partners and S-corp shareholders, investors with significant capital gains or dividends, and anyone whose withholding doesn't cover most of their liability. High-net-worth households are especially likely to owe estimates because more of their income is variable. The four due dates. Estimated payments are generally due in April, June, September, and January of the following year. They do not fall in even three-month intervals, which trips up many taxpayers — mark them in advance. How to avoid an underpayment penalty. The IRS charges a penalty when you underpay during the year, even if you settle up by April. The common "safe harbor" is to pay either a set percentage of last year's tax or the bulk of this year's expected tax through withholding and estimates. Higher earners face a higher prior-year threshold. We calculate the right target for your situation so you neither underpay nor tie up cash unnecessarily. Planning beats guessing. Estimates built on a stale prior year can be badly off in a year with a big gain, a business swing, or a liquidity event. A mid-year projection keeps your payments accurate and prevents an April surprise. If you're unsure whether you should be making estimated payments — or how much — we're glad to run the numbers with you.