1099 gig workers must pay estimated taxes four times a year using Form 1040-ES: April 15, June 16, September 15, and January 15, 2027. On $40,000 net income, total annual tax is approximately $8,852, meaning roughly $2,213 per quarter. Missing a deadline triggers a 7% IRS underpayment penalty (annualized rate).
Unlike W-2 employees, 1099 gig workers don't have taxes withheld from each paycheck. Instead, the IRS requires you to estimate and pay your tax liability four times per year. Missing these payments — even if you pay in full by April — can trigger penalties.
Based on IRS Schedule C and Publication 334. General information only — not tax advice.
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Calculate My Deductions →| Net Income | SE Tax | Federal Tax | Total Est. |
|---|---|---|---|
| $20,000 | $4,626 / yr | $1,157 / qtr | 25% set-aside |
| $35,000 | $8,726 / yr | $2,182 / qtr | 25% set-aside |
| $50,000 | $13,366 / yr | $3,342 / qtr | 27% set-aside |
| $70,000 | $19,973 / yr | $4,993 / qtr | 28% set-aside |
“Generally, you must make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return.” — IRS.gov — Self-Employed Tax Center