This is my first full year doing Uber and DoorDash. Made about $42,000 total (after gas and expenses, net is probably $30K).
I haven't paid ANY quarterly taxes because I didn't know I was supposed to. Q4 payment is due January 15. How much should I pay to avoid penalties?
Also - do I calculate based on gross ($42K) or net after expenses ($30K)?
$7,000?! I don't have that saved up. What happens if I can only pay like $3,000 now?
UPDATE: Paid $3,500 for Q4 via IRS Direct Pay. Will pay the rest in April.
Also went through my Uber and DoorDash records - I drove 28,000 miles this year! At 67 cents/mile that's $18,760 in deductions. My net income is way lower than I thought.
Might actually get a refund instead of owing more. Lesson learned - track EVERYTHING.
Don't panic, but act now. Here's your situation:
What you owe (rough estimate on $48K):
Action items: (1) Make a large estimated payment NOW via IRS Direct Pay (irs.gov) to stop the penalty clock, (2) set up quarterly payments going forward (Q1: Apr 15, Q2: Jun 15, Q3: Sep 15, Q4: Jan 15), (3) open a separate savings account and set aside 25-30% of every payment.