Estimate your quarterly estimated tax payments for self-employment and gig income. Never be surprised at tax time.
If you expect to owe $1,000 or more in taxes from self-employment income, the IRS requires quarterly estimated tax payments. This applies to most gig workers, freelancers, and independent contractors.
The IRS charges an underpayment penalty, typically around 8% annually on the unpaid amount. It is calculated from the due date until the payment date. Making estimated payments avoids this penalty.
Yes! Common deductions include mileage (67 cents/mile in 2024), phone bills, internet, supplies, home office, and platform fees. These reduce your net self-employment income before calculating taxes.
This provides a reasonable estimate based on 2024 tax brackets and rates. For exact calculations, especially with complex situations (multiple income sources, credits, itemized deductions), consult a tax professional.