Taxes are never fun—but they’re even worse when you the “plan” is simply to hope for the best. Most surprise tax bills aren’t caused by bad luck or complicated rules; they’re typically the result of failing to have a plan in place during the year. Here is my roadmap for tax planning in 2026.
📅February – April:
When you meet with your tax pro to file ’25 taxes, be sure to come with a forecast for your business for the upcoming year. You and your tax pro can use this to identify your safe harbor for the upcoming year
What is “safe harbor?” This is the minimum amount you need to pay in to avoid an underpayment penalty when filing your tax return. For the IRS this is the lesser of:
• 90% of this year’s tax liability, or
• 100% of last year’s tax liability (110% if your income is over $150,000)
Once you know that, this will give you your first two estimated payments for the year, which are due on April 15 & June 15.
📅July:
Now that you’re half way through the year, evaluate how things are going for your business compared to your forecast from the beginning of the year. If things are going according to plan, then you probably won’t need to adjust your next quarterly estimate (due September 15). However, if things are going much differently then you anticipated, then you should setup a mid-year planning meeting with your tax pro.
📅October:
As you head into the final quarter of the year, I highly recommend setting up a meeting with your tax pro to fine-tune your forecast for 2026 taxes and make plans.
• If business is worse than anticipated they can help re-calculate your final estimated payment (due January 15) and ensure you’re not sending too much money in.
• If things are going much better than expected they will be able to help you identify some tax saving strategies to implement, as well as help you calculate what your tax bill will be so you can make sure you’re putting enough away in your savings account.
Surprise tax bills aren’t a tax problem—they’re a planning problem, and planning is something you can fix. Make plans today to meet with your tax pro & start getting proactive about 2026!
