Hi,
If you typically owe taxes at filing time, this is for you. That usually happens when you have:
- Self-employment or freelance income
- Equity compensation like ISOs, RSUs, ESPPs, or NSOs
- Crypto sales, capital gains, dividends, or investment income
- Large bonuses, K-1 income, home sale profits, or inheritances
- Stipends, fellowships, or any income that came in without withholding
- Simply not enough withheld from your paycheck
Heads up: the IRS reduced the underpayment interest rate from 7% to 6%. If you owed last year, that extra interest could add up fast.
Here is what that means practically:
- A year ago at 3%, most people shrugged it off. At 6%, it adds up fast and noticeably
- The rate compounds daily – not monthly, not annually
- It resets every quarter based on the federal short-term rate plus 3%
We can help you get ahead of this by:
- Calculating exactly what your Q2 payment should be
- Catching up on any missed Q1 payments to stop penalties from growing
- Adjusting your payroll withholding so this does not repeat next year
- Walking through any tax-saving strategies still available for 2026
Second-quarter estimates are due soon. Please hit reply by Friday so we have enough time to run your numbers or schedule a planning call before the deadline.
Looking forward to hearing from you! Sincerely,
—
George Dimov, CPA
Licensed and Insured
(833) 829-1120 toll free
(212) 994-8081 Fax
www.dimovtax.com