tax
Quarterly taxes for gig workers, without the panic
If you drive, deliver, or freelance, the IRS expects estimated payments four times a year. Missing them is one of the fastest ways to turn a profitable year into a surprise bill.
- Set aside roughly 25–30% of net gig income for federal + self-employment tax (state may add more).
- Use a business banking app with tax buckets so the money never hits your spending balance.
- File Form 1040-ES estimates on the IRS calendar: mid-April, mid-June, mid-September, mid-January.
What counts as gig income
Platform 1099s (DoorDash, Uber, Etsy, Upwork) are the obvious piece. Also include tips paid in cash, side clients who never send a 1099, and marketplace sales over the reporting threshold. Track gross pay, then subtract ordinary business expenses before estimating tax.
A simple set-aside system
Open a separate business checking account the week you start gig work. On payday, move a fixed percentage into a tax sub-account or bucket. Found and Lili both make this automatic; Stride Tax helps estimate the right percentage from your mileage and deductions.
Tools that help
Pair a mileage tracker (Everlance or Gridwise) with a tax-aware bank or dedicated tax software (FreeTaxUSA or Keeper). The goal is not perfect accounting on day one — it is never spending money that already belongs to the IRS.