If you are a gig worker, you may need to pay quarterly taxes rather than a big payment in April. Here are some things you need to know about quarterly tax payments when making a living as a gig worker.
Key takeout
Many independent contractors need to pay taxes quarterly, not annually. To prepare for not one, but four tax payments, you need to closely track your payment records. It is also a good idea to throw away some money for taxes every time you receive payment. If you pay too little or skip payment, you may be penalized.
Independent contractor or employee
Taxes are a little different for gig workers, who are independent contractors. In addition to the quarter ending April 15th, you may need to pay quarterly taxes on three dates. Other dates required to pay quarterly taxes are June 15th, September 15th and January 15th. That’s why gig workers need to remain organized with federal taxes throughout the year.
But not all gig workers need to worry about quarterly tax payments. If you are a worker with an employer who withholds taxes from your pay, you do not need to pay taxes quarterly.
If you’re not sure if you need to pay quarterly taxes, here are the 2025 guidelines from the IRS: Generally speaking, you must pay quarterly taxes if both of the following are true:
We expect taxes to be over $1,000. We also expect tax withholding and credit to be less than 90% of the 2025 tax bill or less than 100% of the 2024 tax bill.
Please note that these percentages may vary if you have farming or fishing income or are considered high income.
Make estimated tax payments
To find out how much you need to pay with estimated tax, follow the instructions provided on the 2025 estimated tax worksheet.
As an independent contractor, you may be penalised if you fail to pay your estimated quarterly taxes on the entire period or on time. Therefore, be careful to monitor these quarterly due dates.
If the payment due date applies to a legal holiday or weekend, the estimated payment will be paid on the next business day. Estimated quarterly payments can be made by phone, email or online.
important
If you have income as both a gig worker and a salary employee, you can avoid paying estimated taxes by asking your employer to withhold any extra taxes from your salary.
How to stay organized with your taxes
If you are a gig worker, here are four tips for managing your estimated tax:
Keep a detailed record. Stay above each payment you receive as a gig worker. “We track all your income and expenses, including receipts and invoices,” said Joanne Burke, a certified financial planner and certified public accountant at Birch Street Financial Advisors. “This is especially important for transactions through payment apps.” Individual personal and business transactions. An important way to organize it is to keep your business records separate from your personal records. “To avoid confusion, use individual accounts or clearly label payments as “products and services” or “personal,” Burke said. “I recommend that clients use individual bank accounts and credit cards for individuals and individuals to easily track them.” Keep the money for taxes. Spend some money for taxes with each payment you receive. “You want to save enough for income taxes, federal, state and self-employment taxes,” Burke said. “It could be over 40% depending on your tax bracket.”
Please get tax assistance. If you are unsure about your estimated tax payment, reach out to your tax advisor for assistance.
Conclusion
You may like the freedom to be a gig worker, but that means paying special attention to your taxes. You may need to pay four quarterly taxes each year, rather than once a year. There may be a penalty if there is no deadline or not paid enough.
If you work as an independent contractor, leave it organized. Track all payments and receipts and separate business and personal transactions. Put some money aside every time you are paid, as it’s enough to pay taxes later.
