If you earn income without taxes withheld, you’re generally required to make quarterly estimated tax payments to both the IRS and the State of New Jersey.
Federal Due Dates (2026)
Q1: April 15. Q2: June 15. Q3: September 15. Q4: January 15, 2027. NJ follows the same schedule.
Safe Harbor Rules
Federally, avoid penalties by paying at least 100% of last year’s liability (110% if AGI exceeded $150,000) or 90% of current year. For NJ, the safe harbor is 80% of current year or 100% of prior year.
Calculating Your Payments
Start with expected total income, subtract deductions, apply tax rates for both federal and NJ, subtract any withholding, and divide the remaining balance by four.
When to Adjust
If your income spikes or drops significantly, adjust your payments accordingly. The annualized income installment method can help if income is uneven.
My Recommendation
I help NJ clients set up their estimated tax schedule at the beginning of each year and revisit it quarterly. We compare actual income to projections and adjust payments to avoid both penalties and overpaying.
Disclaimer: The information provided is for general educational purposes only and does not constitute tax, legal, or investment advice. This content is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. Tax outcomes depend on your specific facts and circumstances. Viewing this material does not create a CPA-client relationship. Personalized advice is provided only through a signed engagement letter.
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