Best Ways to Avoid Owing the IRS Next Year (2026)

Updated September 2026

The best way to avoid owing the IRS next year is to get enough tax paid during the year, through paycheck withholding, quarterly estimated payments or both, so that you hit one of the IRS safe harbors. For 2026 that generally means paying at least 90% of this year’s tax or 100% of last year’s (110% for higher earners), per the 2026 Form 1040-ES. The ten steps below cover how to get there, starting with the fixes that take ten minutes.

1. 1

   Run the IRS Tax Withholding Estimator

   If you’re paid through payroll, the free Tax Withholding Estimator is the fastest fix. Per IRS.gov, it estimates how much your employer or pension provider should withhold for the year, using your latest pay stubs and, if you have other income or itemize, your most recent return.

   At the end, you can download a pre-filled Form W-4 (or W-4P for pensions). Run it now: with a quarter of 2026 left, a W-4 change spreads the extra withholding over fewer paychecks, so each adjustment is larger but still counts.

2. 2

   Update your W-4 after any life change

   Withholding is set by the Form W-4 you gave your employer, sometimes years ago. Marriage or divorce, a second job, a spouse starting work, a new child, or a child aging out of credits can all leave withholding too low.

   Per the 2026 Form 1040-ES, you may be able to skip estimated payments on side income entirely by asking your employer to withhold more from your wages. The Tax Withholding Estimator tells you how much extra to ask for, and a new W-4 takes effect as soon as your payroll processes it.

3. 3

   Pay quarterly estimated tax with Form 1040-ES

   You generally must make estimated payments for 2026 if you expect to owe at least $1,000 after withholding and refundable credits, and your withholding will fall short of the safe harbor, per the 2026 Form 1040-ES. The 2026 due dates are:

   • April 15, 2026
   • June 15, 2026
   • September 15, 2026
   • January 15, 2027 (not required if you file your 2026 return by February 1, 2027 and pay in full)

   IRS.gov notes you can be charged an underpayment penalty even if you are due a refund at filing.

4. 4

   Aim for the safe harbor, not a perfect estimate

   You don’t have to predict your tax exactly. Per the 2026 Form 1040-ES, you avoid the underpayment penalty if your withholding and timely estimates cover the smaller of 90% of your 2026 tax or 100% of your 2025 tax (your 2025 return must cover 12 months).

   If your 2025 adjusted gross income was more than $150,000 ($75,000 if married filing separately for 2026), the prior-year figure becomes 110%. For anyone whose income is rising, paying off last year’s tax is the simplest safe harbor to hit.

5. 5

   Set aside money for self-employment tax

   Freelancers and gig workers owe self-employment tax on top of income tax: 15.3% (12.4% Social Security plus 2.9% Medicare) on net earnings, and you must file if net earnings are $400 or more, per IRS.gov. For 2026, the Social Security portion applies to the first $184,500 of combined wages and self-employment earnings, per the 2026 Form 1040-ES.

   You can deduct the employer-equivalent half when figuring adjusted gross income. A separate savings account that takes a fixed share of every payment makes the quarterly bill much easier.

6. 6

   Track side income even if no 1099 arrives

   Information-return thresholds changed. Under the One, Big, Beautiful Bill, businesses generally file Form 1099-NEC or 1099-MISC only when payments to you total $2,000 or more for payments made after December 31, 2025 (up from $600), with inflation adjustments from 2027, per the IRS 1099-MISC/NEC instructions. Payment apps and marketplaces file Form 1099-K when payments exceed $20,000 in more than 200 transactions, per IRS.gov.

   Fewer forms does not mean less tax. IRS.gov is explicit: you must report all income whether or not you receive a form.

7. 7

   Pay electronically and keep records

   Electronic payments are faster to credit and easier to prove. Per the 2026 Form 1040-ES, you can pay estimated tax through your IRS Online Account, IRS Direct Pay from a bank account, or the Electronic Federal Tax Payment System (EFTPS), which requires enrollment. Your Online Account lets you schedule payments up to 365 days ahead and shows five years of payment history.

   Schedule your remaining 2026 payment and all four 2027 payments in one sitting, then check your Online Account before you file to confirm every one was applied to the right year.

8. 8

   Use the annualized method if income is uneven

   If your income arrives late in the year, such as a year-end bonus, a big client or a property sale, equal quarterly payments can overstate what you owed early on. The 2026 Form 1040-ES says that if a large change after March 31, 2026 requires you to start paying estimates, you should figure them with the annualized income installment method in Publication 505.

   You then file Form 2210 with Schedule AI with your return, even if no penalty is owed, to show the IRS your payments matched when you earned the income.

9. 9

   Do a check-up every September

   By late September you have nine months of real numbers. Compare year-to-date income and tax paid against your 2025 total tax; if you’re short of the safe harbor, you still have the January 15, 2027 estimated payment and the remaining paychecks of 2026 to close the gap. The penalty is figured separately for each payment period, so catching up late reduces it but may not remove it for earlier quarters.

   Also look for one-off items: stock sales, retirement distributions without withholding, unemployment benefits and gambling winnings. Any of these can leave a normally balanced return showing a balance due, so estimate the tax on each one and add it to your January payment or your remaining withholding.

10. 10

    If you still owe, file on time anyway

    The penalty for filing late is far larger than the penalty for paying late. Per IRS.gov, failure to file costs 5% of the unpaid tax for each month or part of a month (up to 25%), while failure to pay is 0.5% per month (also capped at 25%), reduced to 0.25% during an approved payment plan if you filed on time.

    File by the deadline even if you can’t pay, then set up a plan. Our installment agreement page and the explainer on failure-to-file vs failure-to-pay penalties cover the details.

If this year’s balance is already a problem

Preventing next year’s bill works best once this year’s is under control. Interest on an unpaid balance runs at the federal short-term rate plus 3%, reset quarterly, so a growing balance can undo good withholding. Our guide to payment plan help services compares free and paid options, and penalty abatement may remove penalties you already have. Global Gate Tax Relief offers a free consultation at 1-877-800-8180.

Frequently asked questions

Related guides and services

• What happens if you can't pay your taxesSix realistic options when the bill is bigger than your bank balance.
• Back taxes helpResolving balances from earlier years.
• Best tax relief companiesOur disclosed comparison of national firms and free alternatives.

Planning for the January 15 payment or other year-end deadlines? See our year-end IRS checklist.

This guide is general information, not tax or legal advice. Tax rules and IRS procedures change; check the linked IRS sources or speak with a licensed professional about your situation. Individual results vary.