Tax season is less “surprise” and more “we knew this was coming… but here we are.”

Hey there!

It’s official. Taxes are really due this month. Inboxes are filling up, deadlines are getting real, and somewhere out there, someone is still saying, “I’ll get to it tomorrow.”

(Respectfully… this is your sign.)

At IQ Bookkeeping, this is where we shine. Our job? Making sure your numbers are clean, your reports make sense, and your tax prep doesn’t turn into a full-blown identity crisis… unless you enjoy that.

Tax Day is April 15th. Preparing to file, or filing an extension, gives you a big picture of your business’s standing. This is key to creating a smoother plan to stay on top of your tax payments for the tax year that just ended and getting tax payments right for the current year!

We’ll talk about that in more detail, right after…

Housekeeping

📅 What’s Coming Up:

*April 15th, 2026: Big one. Circle it. Highlight it. Tattoo it (kidding… mostly).

Individual tax returns due
Taxes owed must be paid
Last day for IRA & HSA contributions for 2025
C-Corporation returns due
Q1 2026 estimated tax payments due
- This applies to income earned from January 1-March 31, 2026

Important reminder:
Filing an extension (Form 4868) gives you more time to file…
Not more time to pay.

(Yes, the IRS still expects their money on time. They’re consistent like that.)

If you don’t have the money to pay, that does not mean you shouldn’t file. Filing your return on time or filing an extension can help you avoid the stiff 25% failure-to-file penalty, so it’s still the right move.

Also, remember: you’re not the first or last business owner who’s whiffed on this. Penalties and interest are annoying, but they exist because this is a thing that happens sometimes. There is no shame in this game. Taxes can be hard to get right, especially if your business is thriving and grew faster than you expected.

You can pay what you can at filing, set up a payment plan that fits your needs, or take whatever else is the next right step – and you don’t have to do it alone.

If you are not prepared to file…

…do not panic! Just file an extension as soon as possible, using tax software or a tax pro.

Check out Kendall’s story with TaxSlayer:

“I have been using TaxSlayer during my volunteer work with VITA Latino, preparing simple tax returns for vulnerable members of Charlotte’s Latino community. From my personal experience, TaxSlayer is very user-friendly software, so it’s worth checking to see if you qualify to use it. If you don’t qualify for TaxSlayer, there are other free options to file depending on your situation – and filing an extension with any IRS Free File partner is free!” (Ed. note: I’ve interacted with a few different tax softwares this season, and FreeTaxUSA has impressed me with its clarity and user-friendly interface.)

Kendall and a goat friend at Pascuales Farm doing free tax prep for the Latino community here in Charlotte

Once that extension is filed, turn and face the problem head-on. Your friendly neighborhood bookkeepers are standing by to support you! Don’t ignore the problem. It’s better to know what you’re dealing with so you can attack the problem with a plan in place.

Again: while anyone can file an extension, any taxes owed for the 2025 tax year are still technically due on April 15th.* The IRS applies penalties and interest to the amount due each month. If you’re not fully prepared to file and there’s a chance you might owe, you can eliminate the failure to file fee with the extension. You can then file your return as soon as possible (instead of waiting until October when your extension is technically due), and pay what you can as soon as you can.

As a side note: if you owe and choose to set up a payment plan, it is okay to set up the plan for an amount you know you can pay each month and then pay extra whenever you can. There’s no penalty for dousing the debt faster – in fact, it’s the opposite!

Looking Ahead: Estimated Tax Payments

Filing your 2025 taxes gives you great information about how to plan your 2026 estimated tax payments. If you are a small business owner, estimated payments typically cover:

Self-employment tax (combo of Social Security + Medicare that totals 15.3% of your income)
- Paid to the IRS
Federal income tax (varies based on type of income, how much, what income was earned/what taxes were paid by any other earners in your household)
- Paid to the IRS
State income tax (if applicable – paid to your state)
- Google “pay state estimated taxes” + your state to find the right place to submit your payments. (If you can’t find yours, let us know and we’ll help.)

Breaking your tax payment into four manageable payments! Yay, taxes! (But seriously, staying on top of this through the year means Tax Day hurts a lot less.)

W-2 employees, don’t feel left out. The payroll company withholds money from each paycheck to pay the government agencies on your behalf, and your company foots the bill for half of your Social Security and Medicare taxes! But when you’re the business owner cutting yourself a check (and sometimes even when you’re an S-Corp owner on payroll), you’re responsible for all of it.

📅 2026 Estimated Tax Deadlines:

April 15, 2026 (Q1)
→ Covers income earned: Jan 1 – Mar 31

June 15, 2026 (Q2)
→ Covers income earned: Apr 1 – May 31

September 15, 2026 (Q3)
→ Covers income earned: Jun 1 – Aug 31

January 15, 2027 (Q4)
→ Covers income earned: Sep 1 – Dec 31

Are dates evenly spaced throughout the year? No.

Does it feel like a scam? Yes.

The good news is that this newsletter will keep you updated on any important dates! Plus, if you added our calendar from last newsletter, you’re one step ahead!

Go check it out if you haven’t (directions to add the calendar are in last month’s newsletter) and add the tax dates to your calendar for future you!

How Much Should You Pay?

This is the part everyone wants a simple answer to… and the honest answer is:

It depends. I know. Deeply unhelpful. Stay with us me.

A general rule of thumb:

Set aside 25–30% of net income for taxes
Higher-income earners may need closer to 30–35%

But the real answer depends on:

Your total income
Deductions
Filing status
State taxes
Prior year liability

It’s better to pay too much than too little, but you also don’t need to overdo it. If you overpay, you will eventually get that amount back as a refund. If you underpay, you will probably face an underpayment penalty – which is basically the IRS charging you interest on what you owed them and how long you owed it for. It’s calculated quarterly based on the amount of the underpayment, the period in which it was underpaid, and the current quarterly interest rate (which is 7-8% these days – not great!).

Yikes. Is there a safety net?

Short answer: Yes. Don’t overthink it, but know it exists and let it help you plan.

May I present to you… the Safe Harbor Rule.

The IRS “safe harbor” rule basically says:

You can avoid getting hit with underpayment penalties if you pay:

90% of your current year tax, or
100% of last year’s tax (or 110%, if your income was higher)

Why this matters:
→ It gives you a baseline target to plan around, even if your income fluctuates
→ It helps you avoid penalties without needing perfect projections

We like to think of it as:
“Close enough for the IRS to leave you alone.”

THEN, check with your state’s Department of Revenue to determine whether or not you owe them as well. If you live in NC with me, you can estimate here.

Where?

Online is easiest, we strongly recommend it.

Pay Federal Estimated Tax Here

Pay NC Estimated Tax Here

Bookkeeping for Estimated Tax

This might sound like accounting nerd stuff, but this is where things quietly go wrong for a lot of business owners.

Estimated payments are not expenses. They’re prepayments of your tax liability.

Those tax payments must be categorized as “Owner’s Draw Equity.” Here, they will show up on your Balance Sheet, not your P+L. This is because they are personal income tax payments and not a business deduction. You’re taking the money out of the business to pay yourself. Then you, the individual taxpayer, are sending taxes to the IRS. For many business owners experiencing the “you said I’m profitable but I feel broke” crunch, the culprit is forgetting about Owner’s Draws – including taxes – because they aren’t on your P&L.

Pro Tip:

Create a subcategory of “Owner’s Draw” called “Estimated Tax Payments”. This will remind you to inform your tax pro that you did actually make those payments – and DO tell them, preferably with PDF copies of your payment confirmations as evidence!

Some entity types only require the Profit + Loss to file taxes, so the tax pro may never even see your Balance Sheet. This means it’s on you to make sure the tax pro factors your Estimated Tax Payments into their calculations.

Giga Pro Tip:

If you want to feel way more in control:

Set up a separate “Tax Savings” bank account
Transfer a percentage of income into it regularly
Use that account to make your quarterly payments

Quarterly taxes aren’t fun, but they are predictable.

And when your books are clean, and your systems are in place, they become just another routine… not a last-minute panic.

IQBK Client Highlight

Trash & Stash, Cam Ungar

Based here in Charlotte, Trash and Stash is America’s first and only B- Corp certified junk removal service; helping businesses and homeowners navigate cleanouts with both operational efficiency and environmental responsibility. Through their “Designed Discard” approach, Trash and Stash prioritizes donation, resale and recycling to reduce landfill impact with also aligning with their own ESG and sustainability goals. Perhaps even more important, they take a shockingly human approach to item removal. Trash and Stash recognizes that many projects involve moments of transition. Each job is rooted in empathy, professionalism and respect. Trash and Stash welcomes opportunities to support aligned companies and their clients in building a more circular, community- focused economy.

We’re proud to be on Cam’s team behind the scenes, helping ensure the financial clarity and stability that allows them to focus on delivering exceptional, compassionate service to their clients and advancing their mission of sustainable, community-centered cleanouts.