Discussion on: Independent Contractor Taxes Self-Employment HALP

andy profile image
Andy Zhao (he/him)

Personally only have experience with paying taxes after a year and not doing the quarterly payments. I was paid $20/hour, worked about 25 hours a week. I figured I could save enough money come next April instead of sending checks every quarter.

Once I filed I had to owe taxes (as expected) but don't remember being charged a fine for not paying quarterly. The job was in 2017. Not sure if the rules have changed though.

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phallstrom profile image
Philip Hallstrom

Depending on the amount you owed they may require you to make quarterly estimated payments the next year -- regardless of what you expect to make. You can counter that with some other IRS forms though.

In particular there is one you can file that basically says I have no idea how my money will come in and can't possibly pay 1/4 of it in Q1. This can help avoid any future fines where the IRS will penalize you saying you withheld payment till the end of the year.