Filing Quarterly Taxes As a Gig Worker

If you are a gig worker, there's a good chance you'll need to make quarterly tax payments instead of one big payment in April. Here's what you need to know about making quarterly tax payments when you make a living as a gig worker.

Independent Contractor or Employee

For gig workers who are independent contractors, taxes are a little different. You may need to pay quarterly taxes on three dates in addition to the quarter that ends on April 15. The other dates you'll need to pay quarterly taxes are June 15, Sept. 15, and Jan. 15. For that reason, gig workers need to stay organized with their federal taxes throughout the year.

But not all gig workers need to worry about quarterly tax payments. If you're a worker with an employer that withholds taxes from your paychecks, there's no need to pay taxes each quarter.

If you're not sure if you need to pay quarterly taxes, here are the 2025 guidelines from the IRS. Generally speaking, you need to pay quarterly taxes if both of the following are true:

• You anticipate owing $1,000 or more in taxes, and
• You expect your tax withholding and credits to be less than 90% of your 2025 tax bill, or 100% of your 2024 tax bill, whichever is lower.

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Note that these percentages may differ if you have farming or fishing income, or are considered high-income.

Making Estimated Tax Payments

To find out how much you need to pay in estimated taxes, follow the instructions listed in the 2025 Estimated Tax Worksheet from the IRS.

As an independent contractor, you may be penalized if you fail to make an estimated quarterly tax payment in full or on time. So monitor these quarterly due dates carefully.

If a payment due date falls on a legal holiday or on a weekend, your estimated payment will be due on the following business day. You can pay your estimated quarterly payment by phone, by mail, or online.

How to Stay Organized With Your Taxes

Here are four tips for managing your estimated taxes when you are a gig worker.

• Keep detailed records. Stay on top of each payment you receive as a gig worker. "Track all 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."
• Separate personal and business transactions. A key way to get organized is to keep your business records separate from your personal ones. "Use separate accounts or clearly label payments as 'goods and services' or 'personal' to avoid confusion," Burke said. "I suggest clients use separate bank accounts and credit cards for their business versus personal to easily keep track."
• Set aside money for taxes. With each payment you receive, put aside some money for your taxes. "You want to save enough for income tax, federal and state, as well as self-employment tax," Burke said. "Depending upon your tax bracket, it may be upwards of 40%."
• Get tax help. If you are unsure about your estimated tax payments, reach out to a tax advisor for assistance.

The Bottom Line

You might like the freedom of being a gig worker, but that means taking extra care with your taxes. You may need to make four quarterly tax payments each year, instead of one annual payment. Missing a deadline or not paying enough could result in a penalty.

If you work as an independent contractor, try to stay organized. Keep track of all payments and receipts and separate your business and personal transactions. Put some money aside each time you get paid so you have enough to pay taxes later.