If you’re a small business owner, freelancer, or self-employed professional in Conway, the third-quarter estimated tax deadline is one date you don’t want to miss. Unlike W-2 employees who have taxes withheld automatically, self-employed individuals and many business owners are responsible for paying estimated taxes throughout the year — and the Q3 payment is due September 15. At Peavy & Associates, we help clients avoid penalties and cash-flow surprises by planning ahead of this deadline, not scrambling the week before.

Here’s what you need to know.

Who Needs to Pay Quarterly Estimated Taxes?

Generally, you’re required to make estimated tax payments if you expect to owe $1,000 or more in tax for the year after subtracting withholding and refundable credits. This typically applies to:

  • Self-employed individuals and freelancers
  • Small business owners (sole proprietors, partners, S-corp shareholders)
  • Individuals with significant investment, rental, or side income
  • Anyone whose W-2 withholding doesn’t cover their total tax liability

The 2026 Estimated Tax Deadlines

The IRS splits estimated taxes into four payment periods across the year, and Q3 covers income earned from June through August, due September 15, 2026. Missing this deadline — or underpaying — can trigger IRS penalties even if you pay the full amount owed when you file your annual return.

How to Calculate Your Q3 Payment

There are two common approaches:

  • The safe harbor method — paying based on 100% (or 110% for higher earners) of last year’s tax liability, divided across four payments. This protects you from underpayment penalties even if your income fluctuates.
  • The current-year method — estimating your actual 2026 income and calculating tax owed for the year to date. This is more accurate but requires more up-to-date bookkeeping.

For business owners with income that varies quarter to quarter, a mid-year check-in on actual earnings is important — overpaying ties up cash flow, and underpaying leads to penalties.

Common Q3 Estimated Tax Mistakes

  • Basing payments on last year’s numbers without adjusting for a significantly better or worse year
  • Forgetting self-employment tax (Social Security and Medicare) in the calculation, not just income tax
  • Missing the deadline entirely because it doesn’t align with a typical “tax season” mindset
  • Not accounting for state estimated taxes in addition to federal

Why Q3 Is a Good Checkpoint, Not Just a Deadline

Beyond simply making the payment, September is a smart time to look at how the year is trending overall. If revenue is up or down significantly from projections, adjusting your Q3 and Q4 payments accordingly can prevent a large balance due — or an unnecessarily large refund — at filing time.

Let Peavy & Associates Handle the Calculations

Estimated tax calculations get complicated quickly, especially for business owners juggling fluctuating income, multiple income streams, or a first year of self-employment. Peavy & Associates in Conway, SC can review your year-to-date numbers and make sure your Q3 payment is accurate — not just a guess.

Contact us before September 15 to get your estimated payment right.