Guides

Income Jumped Mid-Year? Refigure Estimated Tax (Pub. 505)

Checked October 17, 2026 · Educational summary

General information, not tax, legal or financial advice. We are not the IRS. Check IRS.gov or a qualified tax professional. Sources read on October 17, 2026. Dates and amounts after 2026 are expected. Examples use made-up numbers. This page contains no affiliate links.

Pub. 505 says that after you make an estimated tax payment, changes in income, adjustments, deductions or credits may make it necessary to refigure your estimated tax. You pay the unpaid balance of the amended estimate by the next payment due date after the change, or in installments by that date and the remaining due dates. The IRS provides Worksheet 2-12 (Amended Estimated Tax Worksheet) for this.

Worksheet 2-12 in plain words

1. Enter your amended total estimated tax.
2. Multiply it by 50% if the next payment is due June 15, 75% if September 15, or 100% if January 15.
3. Subtract estimated payments already made.
4. The result (not below zero) is the next required payment.
5. If the next payment is due January 15, stop. Otherwise spread the remaining balance: if the next payment is June 15, half of the remainder goes to each of September 15 and January 15; if September 15, the remainder is due January 15.

The IRS example

Early in 2026 you figure estimated tax of $1,800 and pay $450 on April 15 and June 15. On July 10 you sell investment property at a gain, and your refigured estimated tax is $4,100. The required payment for the third period is $2,175 (75% of $4,100 = $3,075, less $900 paid), and if nothing changes again the fourth-period payment is $1,025 ($4,100 - $900 - $2,175).

Penalty

The penalty is figured separately for each payment period. If you used the regular installment method and later refigure because income rose, you may be charged an underpayment penalty for the earlier periods; Pub. 505 points to Schedule AI (annualized income installment method) in the Form 2210 instructions to reduce it. See annualized method and Form 2210.

Dates (2026 payments)

June 15, 2026 and September 15, 2026 have passed; the last 2026 payment is due January 15, 2027 (a Friday) unless you file by January 31, 2027 and pay in full (January exception). For 2027, the same pattern is expected (April, June and September 15, 2027, then January 2028); January 15, 2028 is a Saturday, so the weekend rule may move that date. Not confirmed.

FAQ

Do I need the worksheet if my income dropped?

The same method works; the worksheet isn't limited to increases (our reading).

Where does the first-payment-after-April case go?

Pub. 505 says the same worksheet applies if your first payment is due after April 15.

What we could not verify