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Gig work is now a major part of how Americans earn a living. Most gig workers are sole proprietors, meaning they own a business that has not set up a separate entity, like an LLC or corporation, in their state. In most cases, gig workers receive a 1099 and report their profit and loss on a Schedule C, but this is not the only tax consideration they face.
As a sole proprietor, you are responsible for paying both income tax and self-employment (SE) tax, which covers your Social Security and Medicare contributions. Quarterly estimated tax payments cover both.
See the 2026 Rideshare Driver Tax Guide for a comprehensive guide to filing your taxes as a rideshare driver.
What are quarterly estimated taxes?
Taxes are pay-as-you-go. This means that we should pay our taxes as we receive income throughout the year, whether that’s having taxes withheld by the payer, like you would at a traditional employer, or by submitting quarterly estimated tax payments to the IRS.
When you have income that is not subject to withholding by the payer then you probably need to make estimated tax payments.
This includes taxable income from ANY payer that doesn’t withhold tax on your behalf, such as:
- Self-employment
- Gig work
- Independent Contracting
- Interest
- Dividends
- Prizes
- Rental Income
When and how do I pay quarterly estimated taxes?
The IRS rule of thumb is that if you expect to owe at least $1,000 when you file your annual tax return, you should make quarterly estimated tax payments (QET) throughout the year. For 2026 income, payments are due April 15, June 15 and September 15, 2026, and January 15, 2027. You typically figure and pay your QET using your prior-year tax return as a guide, along with IRS Form 1040-ES.
Your prior-year return makes the math easier. Find the total tax on your 2025 Form 1040 and divide it by four to get a minimum payment for each quarter. If you pay 100% of that amount (110% if your 2025 adjusted gross income was over $150,000), a safe harbor rule protects you from penalties, even if your income grows. Any overpayment is refunded to you.
If you track your income and expenses with an app like QuickBooks self-employed or Hurdlr, the software will help you estimate your payments. Hurdlr provides real-time tax calculations, and its “Pro” tier lets you add your tax professional, making it easier to stay on track with QET.
You can make estimated tax payments online, by mail with your 1040-ES attached, or through the Electronic Federal Tax Payment System, a tax payment service provided by the U.S. Department of the Treasury.
When are estimated tax payments due in 2026?
| Period | Date Due |
|---|---|
| January 1 to March 31 | April 15 |
| April 1 to May 31 | June 15 |
| June 1 to August 31 | September 15 |
| September 1 to December 31 | January 15 of the following year |
Why should I pay quarterly estimated taxes?
The IRS charges an estimated tax penalty when you underpay throughout the year. Making QET payments helps you avoid a surprise tax bill, interest and that penalty, which can save you hundreds of dollars each year, if not more.
In some cases, the IRS will waive the penalty. You complete IRS Form 2210 to see whether you owe a penalty for underpaying and, if you do, to figure the amount.
Most gig workers avoid the penalty if they pay at least 90% of the current year’s tax, or 100% of the tax shown on their prior-year return, whichever is smaller. If your prior-year adjusted gross income was over $150,000, the prior-year figure is 110%. That is why your prior-year return is such a useful guide.
It’s never too late to improve your tax habits as a gig worker. Being proactive with the IRS could save you thousands of dollars.
Bri Jackson is a QuickBooks ProAdvisor, Tax Consultant, and co-founder of Next Gen Tax & Financial Services. She helps gig economy workers and self-employed individuals with tax strategy and financial planning.
Book a Free Consultation: https://calendly.com/nextgentax/15min
