Quarterly taxes for gig workers can come as a surprise: independent contractors may need to send the IRS estimated payments during the year, rather than waiting until they file in April. The 2025 rules focus on how much tax you expect to owe and how much will already be covered by withholding and credits, so start with your income and payment records.
Quarterly taxes for gig workers: who needs to pay
For 2025, the IRS generally expects estimated payments if both parts of its test apply: you expect to owe at least $1,000 in tax, and your withholding and credits are expected to cover less than 90% of your 2025 tax bill or 100% of your 2024 tax bill, whichever amount is lower.
The test is about your total tax picture, not simply whether you earned money through an app. A contractor with several sources of income should consider all of them when estimating the bill. The percentages can differ for people with farming or fishing income and for people the IRS considers high income, so the general test may not fit every situation.
Employees whose employer withholds taxes from each paycheck generally do not need separate quarterly payments. If you earn both gig income and a salary, one option is to ask your employer to withhold extra from your wages. That can cover some or all of the tax due on your contract work, depending on your overall figures.
| Part of the 2025 test | What to check |
|---|---|
| Expected tax due | Do you expect to owe at least $1,000? |
| Expected withholding and credits | Will these cover less than 90% of your 2025 tax bill or 100% of your 2024 bill, whichever is lower? |
| Special circumstances | Farming or fishing income and high income status can change the percentages. |
Both parts of the general test must apply. If you are close to either threshold, use the IRS worksheet or ask a tax professional to review your estimate instead of relying on a rough guess.
Four payment dates and how to estimate the amount
Independent contractors generally have four payment dates to keep on the calendar: April 15, June 15, Sept. 15 and Jan. 15. The January payment falls after the year being measured, so mark the dates early and check the IRS instructions for the relevant tax year.
The 2025 Estimated Tax Worksheet from the IRS is the starting point for working out how much to send. It helps translate expected income and tax obligations into an estimated payment. Keep the worksheet with your records, and update the estimate if your gig income changes substantially during the year.
Paying late or sending less than the required amount can lead to a penalty. If a due date falls on a legal holiday or weekend, the payment is due the next business day. Payments can be made online, by phone or by mail. Allow enough time for the method you choose, and retain confirmation or mailing records.
There is a useful alternative for people with both contract income and wages: request extra withholding from the employer. That can reduce or remove the need for estimated payments, but it is still important to check whether the added withholding is enough for your total tax bill.
Build a routine around each gig payment
Each time a client or platform pays you, record the amount and set aside money for taxes before treating the full payment as spendable income. Joanne Burke, a certified financial planner and certified public accountant at Birch Street Financial Advisors, recommends tracking income and expenses, including invoices and receipts. Records are especially useful when transactions run through payment apps.
Keep business activity distinct from personal spending. A separate bank account and credit card can make income and expenses easier to identify when you prepare your estimate or tax return. If separate accounts are not practical, clearly label transactions and save supporting records so personal purchases do not blur your business totals.
Your reserve may need to cover federal and state income taxes as well as self employment tax. Burke says the amount could be upwards of 40%, depending on your tax bracket. That is not a universal rate: your circumstances determine the amount, so use the worksheet or get help to set a figure that matches your own income.
A simple routine can keep the obligation manageable:
- Log each payment, expense, invoice and receipt as it happens.
- Move a portion of every gig payment into a separate tax savings account.
- Review your estimated income and the next due date regularly.
- Contact a tax advisor if you are unsure how much to pay or whether the general IRS test applies to you.
These habits help prevent a large tax bill from arriving without cash set aside to cover it. They also make it easier to revise your estimate when work is busier or slower than expected.