Taxes•January 3, 2025•8 min read

Quarterly Tax Guide for Gig Workers (2025)

Avoid penalties and stay on top of your tax obligations as a 1099 contractor. Here's everything you need to know about quarterly estimated tax payments.

2025 Quarterly Tax Deadlines

  • Q1 2025 (Jan 1 - Mar 31): Due April 15, 2025
  • Q2 2025 (Apr 1 - May 31): Due June 16, 2025
  • Q3 2025 (Jun 1 - Aug 31): Due September 15, 2025
  • Q4 2025 (Sep 1 - Dec 31): Due January 15, 2026

Why Gig Workers Pay Quarterly Taxes

Unlike traditional employees who have taxes withheld from each paycheck, independent contractors are responsible for paying their own taxes throughout the year. The IRS requires quarterly estimated tax payments if you expect to owe $1,000 or more in taxes.

What Taxes Do You Owe?

As a gig worker, you're responsible for:

  • Income Tax: Federal and state income tax based on your tax bracket
  • Self-Employment Tax (15.3%): Covers Social Security (12.4%) and Medicare (2.9%)

How to Calculate Quarterly Taxes

Simple Formula:

  1. Calculate your total income for the quarter
  2. Subtract business expenses (mileage, phone, supplies)
  3. This is your net profit
  4. Multiply by 30% (covers income tax + self-employment tax)
  5. This is your quarterly payment

Example: If you earned $10,000 in Q1 with $2,000 in expenses, your net profit is $8,000. Your quarterly payment: $8,000 × 0.30 = $2,400.

How to Pay Quarterly Taxes

Three easy methods:

  1. IRS Direct Pay: Free online payment at irs.gov/payments
  2. IRS2Go Mobile App: Pay from your smartphone
  3. Mail a Check: Send Form 1040-ES with your payment

Penalties for Late Payment

If you underpay or miss a quarterly deadline, the IRS charges a penalty of approximately 0.5% per month on the unpaid amount. For a $2,000 payment that's 3 months late, that's about $30 in penalties—not huge, but avoidable.

Pro Tips for Gig Workers

  • Set aside 30% of every payment immediately
  • Use Portable to automatically track quarterly earnings
  • Keep a separate savings account for taxes
  • Track ALL business expenses (you'll thank yourself later)
  • If your income varies, pay based on actual quarterly earnings, not last year's total

What If You Can't Pay?

If you're short on a quarterly payment, pay what you can and set up a payment plan with the IRS. It's better to pay something than nothing—penalties and interest compound quickly.

Ready to Simplify Your Taxes?

Portable automatically calculates your quarterly tax estimates based on your actual income from all platforms. No more guesswork, no more spreadsheets.

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