Estimated Taxes

Definition

Quarterly tax payments made by self-employed individuals to cover income and self-employment taxes throughout the year.

Related Terms

IRS form for calculating and paying estimated quarterly taxes. Gig workers use this to pay taxes throughout the year rather than a lump sum at filing.

Underpayment Penalty

IRS penalty charged when taxpayers don't pay enough estimated taxes throughout the year. Currently about 8% annual rate on the underpaid amount.

FAQs

When are they due?

April 15, June 15, September 15, and January 15.

What if I don't pay?

Penalties and interest on underpayment.

Similar Terms

1099 Form

IRS tax form reporting income paid to non-employees, commonly 1099-NEC for contractor pay or 1099-K for payment platforms.

1099-K

Tax form reporting payments from payment networks like PayPal or gig platforms when exceeding annual thresholds.

1099-NEC

Tax form for non-employee compensation of $600 or more, replacing Box 7 of the old 1099-MISC for contractor payments.

Self-Employment Tax

Social Security and Medicare taxes for self-employed individuals, totaling 15.3% on net earnings.

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Last updated: January 18, 2026

Reviewed by GigFinance Team, Gig Economy & Finance Experts

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Important Disclaimer: This content is for informational purposes only and should not be considered tax, legal, or financial advice. Consult a qualified professional (CPA, tax attorney, or financial advisor) for advice specific to your situation.

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