Line 67: Estimated Tax Payments

If you’re self-employed, have rental income, or collect investment income without withholding, you’ve probably been writing checks to New York State four times a year. Line 67 is where all those quarterly estimated payments finally get counted toward your tax bill. It’s also the line where mistakes — missed payments, wrong amounts, payments credited to the wrong tax year — tend to surface.

Who Makes Estimated Payments (and Why)

New York’s tax system runs on pay-as-you-go. W-2 employees handle this through payroll withholding. Everyone else — freelancers, sole proprietors, landlords, retirees with pension income that isn’t withheld, partners in LLCs — has to make quarterly estimated payments instead. This requirement is established under NY Tax Law Section 685.

The threshold is straightforward. If you expect to owe $300 or more in New York State tax after subtracting withholding and credits, you’re supposed to make estimated payments. That’s a lower bar than the federal threshold of $1,000 (per IRS Form 1040-ES), which catches some people off guard. You can owe zero estimated tax federally and still owe it to New York.

You make these payments using Form IT-2105 (the payment voucher) or electronically through New York’s Online Services portal. Most tax pros recommend electronic payment because you get instant confirmation and a clear record.

The Four Due Dates

New York’s quarterly schedule follows the federal calendar, which is not actually quarterly in any logical sense:

Q1: April 15 — covers January through March
Q2: June 15 — covers April and May (yes, just two months)
Q3: September 15 — covers June through August
Q4: January 15 of the following year — covers September through December

The uneven spacing trips people up constantly. That two-month gap between April 15 and June 15 means two payments are due within 60 days. Set calendar reminders or you’ll forget Q2. For a full breakdown of timing, check our guide on when quarterly taxes are due.

If a due date falls on a weekend or holiday, the deadline shifts to the next business day. January 15 payments that come in before you file your return still count for the prior tax year.

Safe Harbor: How Much You Need to Pay

New York uses safe harbor rules to determine whether you’ve paid enough through estimates. You won’t owe an underpayment penalty if your estimated payments (plus any withholding) equal at least:

90% of your current year’s tax liability, or
100% of your prior year’s tax (the amount from last year’s Line 62 on your IT-201)

There’s a catch for higher earners. If your adjusted gross income was over $150,000 last year ($75,000 if married filing separately), the prior-year safe harbor jumps to 110%. So if you owed $12,000 in NY tax last year and your AGI was $200,000, you’d need to pay at least $13,200 in combined estimates and withholding to avoid penalties. The federal safe harbor works similarly under IRC Section 6654.

Here’s the part most people don’t realize: you can satisfy safe harbor with uneven payments. If your income spikes in Q3 (say you sold a rental property), you can make a larger Q3 payment. New York allows annualized income installment calculations on Form IT-2105.9 to prove that your payment schedule matched when you actually earned the income.

What Gets Reported on Line 67

Line 67 captures the total of all estimated payments you made for the tax year, including:

Quarterly voucher payments — the standard IT-2105 payments made by the four deadlines
Overpayment applied from prior year — if you chose to apply last year’s refund to this year’s estimates, that amount goes here too
Extension payments — if you filed Form IT-370 and made a payment with your extension request, it counts

Double-check this number against your records. The most common error is forgetting to include the overpayment credit from the prior year’s return. If you applied $2,000 of last year’s refund to this year’s estimates, that $2,000 should be part of your Line 67 total.

When Estimates and Withholding Overlap

Some filers have both — a W-2 job with withholding and freelance income requiring estimates. Your withholding shows up on Line 68, and your estimated payments go on Line 67. Together, they represent your total payments toward the year’s tax bill.

If you’re in this situation, you might be able to avoid estimated payments entirely by bumping up your W-2 withholding. File a new IT-2104 with your employer requesting additional withholding. Some people find it easier to have an extra $200 per paycheck withheld than to remember four quarterly deadlines. It’s not the textbook approach, but it works.

The combined total of Lines 67 and 68 gets compared to your actual tax. If the total exceeds what you owe, the difference becomes your overpayment on Line 72. If it falls short, you’ll see a balance due on Line 76.

Underpayment Penalties

Miss a quarterly deadline or pay too little, and New York charges an underpayment penalty. It’s calculated on Form IT-2105.9 and runs at the prevailing interest rate (currently around 7.5% annually). The penalty applies separately to each quarter, so even if you caught up later in the year, you’ll still owe interest on the quarters you missed.

The penalty isn’t huge for most people — often $50 to $200 — but it’s avoidable. And it stacks with any federal underpayment penalty, so the combined hit can sting.

Sources & References

Frequently Asked Questions

What if I overpaid my estimated taxes?

If your total estimated payments exceed your tax liability, the excess shows up as an overpayment on Line 72. You can either get it refunded (via direct deposit or paper check) or apply it to next year’s estimated taxes. Many self-employed filers intentionally overpay slightly to build a cushion for the following year.

Can I skip estimated payments if I increase my W-2 withholding?

Yes. If you have a W-2 job, you can file a new IT-2104 with your employer to increase your state withholding. The extra withholding gets treated the same as estimated payments for safe harbor purposes. This is a popular strategy because withholding is treated as paid evenly throughout the year, even if you increase it in December.

Do I need to make equal quarterly payments?

Not necessarily. If your income is uneven — say you’re a freelancer who earns most of your income in Q4 — you can make larger payments in later quarters and smaller ones earlier. You’ll want to use Form IT-2105.9 (annualized income installment method) to demonstrate that your payment schedule matched your income pattern, which avoids underpayment penalties on the lighter quarters.

I forgot to make my Q2 payment. What should I do?

Pay it as soon as possible. The underpayment penalty is based on how long the payment is late, so sending it a week late costs much less than waiting until year-end. Go to New York’s Online Services portal and make the payment electronically. You’ll owe a small interest charge on that quarter, but paying promptly minimizes the damage.

Does New York send estimated payment reminders?

No. Unlike some states, New York doesn’t mail reminders for quarterly estimates. If you use Form IT-2105 vouchers, you get all four at once when you print them. The onus is entirely on you to remember the deadlines: April 15, June 15, September 15, and January 15. Most tax software will generate the vouchers automatically when you file.

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