First year doing gig work - how much should I pay in Q4 estimated taxes?

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Started by quinn_t_5 · Nov 13, 2024 · 3 replies
For informational purposes only. Not legal advice.
GL
quinn_t_5OP

This is my first full year doing Uber and DoorDash. Made about $42,000 total (after gas and expenses, net is probably $30K).

I haven't paid ANY quarterly taxes because I didn't know I was supposed to. Q4 payment is due January 15. How much should I pay to avoid penalties?

Also - do I calculate based on gross ($42K) or net after expenses ($30K)?

GL
quinn_t_5OP

$7,000?! I don't have that saved up. What happens if I can only pay like $3,000 now?

GL
quinn_t_5OP

UPDATE: Paid $3,500 for Q4 via IRS Direct Pay. Will pay the rest in April.

Also went through my Uber and DoorDash records - I drove 28,000 miles this year! At 67 cents/mile that's $18,760 in deductions. My net income is way lower than I thought.

Might actually get a refund instead of owing more. Lesson learned - track EVERYTHING.

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UI
update_in_comments_5

Don't panic, but act now. Here's your situation:

What you owe (rough estimate on $48K):

Action items: (1) Make a large estimated payment NOW via IRS Direct Pay (irs.gov) to stop the penalty clock, (2) set up quarterly payments going forward (Q1: Apr 15, Q2: Jun 15, Q3: Sep 15, Q4: Jan 15), (3) open a separate savings account and set aside 25-30% of every payment.