Still Owe 2026 Quarterly Estimated Payments If 2025 Total Tax Liability is Extremely Low?

[middle89]

If my 2025 total tax liability was $9, do I still need to make quarterly estimated payments for my 2026 sole proprietor 1099 contractor income? It will be way higher than $9 in 2026. And I know I can just pay the whole $9 in the first quarterly payment if I actually owe anything.

If so, what is the best/easiest way to pay the quarterly payment?

I see you can go to irs.gov/directpay and select form "1040-ES". Is this the correct thing to do? And If I'm a sole proprietor 1099 contractor, would I choose "personal taxes" rather than business?

[PatriciaV]

Your prior year tax liability is used as a test to determine if you pay enough tax during the year to avoid penalties, but isn't necessarily a measure of what you'll owe. As your business profit (income minus expenses) grows during the year, you'll need to calculate the estimated tax on that income. TurboTax offers several calculators to help you with this here: TurboTax Calculators.

You don't need to complete Forms 1040-ES right now - they are for your use if you mail payments to the IRS during the year. Those forms are not part of your tax return. The easiest way to make quarterly estimated tax payments is on the IRS website here: IRS Payments. You're making estimated payments for Form 1040 (your personal return).

For more help, see Estimated Taxes: How to Determine What to Pay and When

[middle89]

So do I personally need to make quarterly estimated tax payments this year?