Estimated Taxes: Get Ready for the Final Payment on April 15
Keep it updated closing the books and paying differences to the IRS
April 15 marks one of the most significant dates in the tax calendar. It is not only the deadline for filing your tax return, but it is also when the IRS assesses whether your payments throughout the year were sufficient or if you have a remaining balance due. For many taxpayers, this date signifies the official closing of the previous tax year.
For freelancers, independent contractors, business owners, LLC partners, and S Corporations, the process can be more complex. This complexity arises because there are often no automatic withholdings to cover the total tax liability. Therefore, understanding how estimated taxes work, the process of closing your books, and making the final payment is essential to avoid surprises or penalties.
Their impact on the final payment
Estimated Taxes are advance payments that the IRS requires when a person does not have enough taxes withheld during the year. This commonly occurs when income comes from self-employment, businesses, rentals, investments, or digital platforms. Throughout the year, these payments are made quarterly based on an estimate of income.
The final adjustment occurs on April 15. On this date, the IRS compares your actual earnings for the year with the Estimated Taxes you have already paid. If your income was higher than anticipated or if the payments were based on incomplete information, it is common to have a remaining balance that must be paid by the deadline.
What it means to close the books
Talking about “closing the books” means that your accounting for the prior year is completely closed, reviewed, and ready to be presented to the IRS. This implies that all income was recorded correctly, expenses and deductions are documented, and bank and credit card accounts are reconciled.
Without a proper accounting close, it is not possible to correctly calculate the final tax or determine whether the Estimated Taxes were sufficient. Many taxpayers try to file their return without having closed their books, which often leads to errors, missed deductions, or unexpected differences with the IRS.
Why do differences appear even if you made estimated payments?
Many taxpayers are surprised to find that they owe money in April, even when they made estimated payments during the year. This usually happens when income increases unexpectedly, when new clients or projects are added, or when payments were calculated based on income from prior years.
It can also happen when expenses were not recorded correctly or when there was no periodic review of the accounting. For this reason, the IRS recommends reviewing income and payments throughout the year and not waiting until year-end to make adjustments.
How to prepare correctly before the deadline
To prepare for the April 15 deadline, review your income, confirm that all expenses are documented, and ensure your estimated payments match your expected tax liability. Taking these steps helps you correct errors and avoid penalties.
This month, you’ll make the final payment for the previous tax year and the first estimated payment for the new year. Being prepared will help you manage cash flow and avoid surprises.
A prior tax analysis can clarify your financial situation, allowing for informed decisions before the IRS closes the year. Trust our bilingual CPAs to keep everything in order. How to avoid surprises in future years
The best way to avoid surprises is to keep your accounting up to date throughout the year and periodically review your Estimated Taxes. Adjusting payments when income changes and having professional guidance from one of our CPAs, both in English and Spanish, helps make April 15 a confirmation, not a surprise.
Close your tax year correctly with Jambrina CPA
At Jambrina CPA, we care about making your tax experience easy and problem-free. If you need a reliable CPA in Texas, whether in Houston, Dallas, or anywhere in the U.S., our dedicated team is ready to help you. We will carefully review your income, give you clear tax advice, and handle all the calculations so you feel confident by April 15.
We also help with planning for estimated taxes, international tax issues, and business accounting. This support helps reduce errors and avoid surprises with the IRS. From Houston to anywhere in the U.S., our skilled bilingual CPAs provide high-quality, compliant services tailored just for you!