Prepayment of 2025 Taxes

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I have completed the three quarterly prepayment periods through September 2025 to satisfy a presumed liability based upon actual 2024 taxes. However, given the lesser income in 2025 and larger $ value withheld from disbursement of IRA accounts (in addition to quarterly pre-payments), I'll likely receive a substantial refund.

Should I NOT pay the final quarterly payment due JAN 2026?

Expect that I'll be due a refund with the expectation that I'll completed my 2025 return before end of January 2026.

VolvoGirlAnswer

Level 15

Expert Reviewed

Yes you can skip the last estimated payment. They are optional to pay. The IRS won’t be expecting them.

VolvoGirlAnswer

Level 15

Expert Reviewed

Yes you can skip the last estimated payment. They are optional to pay. The IRS won’t be expecting them.

baldietax

Level 12

yes if you have met safe harbor but paid it 'early' in Q1-3 then you don't need to pay more ES, the smaller safe harbor amount based on 90% of 2025 will be spread out over all 4 quarters and you will show overpayments in Q1-3 that will carry forward to Q4 and your refund.

problems arise if you didn't pay enough early in the year, you could still meet your safe harbor for the year in total but if you only paid it in later quarters you could still be penalized for an underpayment in Q1 etc, even tho you have a refund.