Q2 Estimated Taxes: A Five-Minute Sanity Check
A quick framework for deciding whether to adjust your June 15 estimated tax payment — or leave it alone.
The June 15 deadline for Q2 estimated taxes is easy to autopilot. Five minutes of thought before you cut the check can save you from an underpayment penalty — or from parking cash with the IRS when you don't need to.
Start with the safe-harbor rule
You avoid an underpayment penalty if your total withholding plus estimates equal either:
- 100% of last year's tax (110% if your prior-year AGI was over $150,000), or
- 90% of this year's tax
If you know last year's number and you're paying evenly through the year, safe harbor is the easy path.
When to increase Q2
- A big bonus, RSU vest, or capital-gain event landed after Q1.
- Business income is running well above last year.
- You changed jobs and the new W-4 is under-withholding.
When to decrease Q2
- Income is materially lower than the amount you baseline'd Q1 on.
- You already covered the safe harbor with Q1 alone.
- A one-time event (severance, sale) inflated your Q1 estimate.
The five-minute check
- Pull your YTD income and withholding.
- Compare it against last year's total tax divided by four.
- If you're ahead of pace, leave June alone. If behind, catch up now — penalties compound quarterly.
If any of this feels like a coin flip, that's usually a sign the numbers are worth a second pair of eyes.
Ready to talk it through?
Pick whichever is easiest — a booked slot, a call back, or a text.
You can also text (908) 660-0090 directly.
Have a similar question about your business?
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