Ready to Get Your Money Back From the IRS?
Bring us up to 3 years of past taxes and we’ll find ways to save you money, when we do we’ll help you file to get your money back from the IRS.
Key Individual Tax Due Dates for September 2026
As fall approaches, it is an ideal moment to evaluate your 2026 tax picture and lay the groundwork for 2027. With a key estimated tax payment due this month, now is the time to review your income, withholdings, and estimated payments to determine if any year-end adjustments are necessary. Reaching out to our office for a tax planning consultation can help ensure your financial strategy stays on track.
September 10: Reporting Tips to Your Employer
If you work for tips and received more than $20 during the month of August, you are required to report that amount to your employer no later than September 10. You can fulfill this obligation using IRS Form 4070 or by providing your own signed written statement. Any custom statement must include your name, address, and Social Security number; the employer or establishment's name and address; the specific period covered; and the total tips received during that timeframe.
Once reported, your employer is obligated to withhold FICA and income taxes on those tips directly from your standard wages. In cases where your regular pay is insufficient to cover the required tax withholding, your employer will report the uncollected amount in box 8 of your W-2 for the year. You will then be responsible for paying that uncollected tax when you file your annual return.
September 15: Third Quarter Estimated Tax Payment
The third installment for 2026 individual estimated taxes is due on September 15. The federal tax framework operates on a "pay-as-you-earn" basis, meaning taxpayers must pay tax as they receive income throughout the year. The government facilitates this through several mechanisms:
- Payroll withholding for employees
- Pension withholding for retirees
- Estimated tax payments for self-employed individuals and those earning income not subject to withholding
Falling short of a minimum "safe harbor" prepayment amount can trigger an underpayment penalty. The IRS calculates this penalty quarter-by-quarter, applying the federal short-term rate plus three percentage points.
Fortunately, federal tax law offers specific ways to avoid these penalties. First, if your underpayment is less than $1,000 (the de minimis threshold), no penalty is assessed. Beyond that, you can rely on two primary safe harbor prepayment rules:
- Current Year Safe Harbor: You can avoid a penalty if your total payments equal or exceed 90% of the tax owed for the current year.
- Prior Year Safe Harbor: You are generally protected if your prepayments match 100% of your prior year’s tax liability. However, if your Adjusted Gross Income (AGI) exceeds $150,000 (or $75,000 for married taxpayers filing separately), this threshold increases to 110% of the previous year’s tax.
Applying the Safe Harbor Rules: An Example
Imagine your total tax for the year is $10,000, but your prepayments only amount to $5,600, leaving you with a $4,400 balance due on your tax return. To determine if you owe a penalty, look at the first safe harbor exception. Since 90% of $10,000 is $9,000, your $5,600 in prepayments falls short. You cannot rely on this exception to avoid the penalty.
However, the prior-year safe harbor might still protect you. Suppose your previous year's tax liability was $5,000. Under the high-income rule, 110% of that prior-year tax equals $5,500. Because your $5,600 prepayment exceeds the $5,500 requirement, you successfully qualify for this safe harbor and can escape the penalty.
This scenario underscores why monitoring your prepayments is critical, particularly if you experience a significant jump in income from the sale of stocks, real estate transactions, large bonuses, or retirement distributions. Making each required estimated tax installment on time is also a mandatory requirement to qualify for the safe harbor exception. If you have questions regarding your specific safe harbor estimates, please call our office as soon as possible.
Caution: State-Level Variations
CAUTION: Some state-level de minimis amounts, alternative safe harbor calculations, and estimate due dates differ from the federal system. Please call our office to confirm the specific safe harbor rules for your state.
Navigating Weekends, Holidays, and Disaster Extensions
Whenever a tax due date lands on a Saturday, Sunday, or legal holiday, the deadline is automatically pushed to the next business day that is not itself a legal holiday.
Additionally, the IRS extends tax due dates for taxpayers located in federally designated disaster areas. To verify if your geographic area qualifies for disaster relief and to find updated filing extension dates, you can consult the following official resources:
- FEMA: https://www.fema.gov/disaster/declarations
- IRS: https://www.irs.gov/newsroom/tax-relief-in-disaster-situations
Preparing for Year-End Tax Adjustments
September’s due dates serve as an important checkpoint for your annual tax strategy, ensuring you stay compliant and avoid unnecessary underpayment penalties before the year closes. Whether you need to accurately report tip income, verify your estimated payments against safe harbor rules, or adjust your withholding, being proactive now can save you unexpected costs later. Contact our office today to schedule a tax planning consultation and confirm your financial strategy is properly aligned for 2026.
Want our best tax and accounting tips and insights delivered to your inbox?
Sign up for our newsletter.
I confirm this is a service inquiry and not an advertising message or solicitation. By
clicking “Submit”, I acknowledge and agree to the creation of an account and to the
and
.
 |  |  |  |  |
Get in touch
See how we can help you today!
4600 Roseville Road, Suite 150
North Highlands, California 95660
North Highlands, California 95660
916) 974-9399