What Are Estimated Taxes for Gig Workers?

Because no one withholds taxes from gig income, you're responsible for sending estimated payments to the IRS four times a year — in April, June, September, and January. If you expect to owe $1,000 or more in federal taxes from your gig work, making these payments helps you avoid an underpayment penalty. Use Form 1040-ES to calculate what you owe each quarter. A simple approach: set aside 25-30% of every payment you receive for taxes. IRS Direct Pay makes submitting payments quick and free.