Identify the obligation
Federal taxes are paid as income is earned, through withholding, estimated payments, or both. Estimated tax can include income tax and self-employment tax. Business income may create a need to make payments during the year.
Confirm whose tax you are estimating. Individual owners and corporations can have different requirements. Ask your tax preparer which federal and Maryland obligations apply to your situation before choosing a form or payment account.
Prepare a working estimate
Gather your prior return, current income and expense totals, expected remaining income, withholding, credits, and payments already made. For individuals, use the current Form 1040-ES worksheet and instructions when applicable.
Use the prior return as a starting reference, then account for changes in earnings, deductions, and tax law. A percentage of sales cannot capture those factors. Revisit the estimate when business results or household circumstances change.
What is the strongest starting point for an estimated tax review?
Schedule and document payments
Copy payment deadlines from the current instructions into your calendar. Payment periods are not simply equal three-month blocks. If income varies seasonally, ask about the annualized income installment method rather than assuming identical payments fit your situation.
Check Maryland guidance separately; a federal payment does not replace a Maryland payment you owe. Save confirmations with the tax year, payment type, amount, and date. Money set aside in a bank account still needs to be paid.
Action checklist
Choose the items you want, or print all.
Sources & further reading
- IRS: estimated taxes ↗
- IRS 2026 Form 1040-ES and instructions ↗
- Maryland 2026 personal tax payment voucher and instructions ↗
General business education. Follow current agency instructions and review your circumstances with a qualified tax, legal or financial adviser.