Estimated Taxes

[Clayton90]

Last year I worked at a couple jobs at the start of the year, and then started driving for Uber at the end of the year. I ended up getting a refund of a few hundred dollars. This year I have been driving full time for Uber (no jobs) and am wondering how I am supposed to estimate my taxes. My income last year was significantly lower than it will be this year.

[LindaA]

There are a few ways you may estimate your 2018 federal taxes.

• If you haven't already filed your 2017 tax return, visit the estimated payment calculation interview by following these instructions. During the part of the interview where you Review Your Estimates for 2018, answer Yes when asked Do you want to adjust your income or deductions?  Then when you continue through the interview you'll be able to enter your income for 2018, based on your best guestimate of what you'll make driving for Uber. 

• If you've already filed your return (or just prefer using this method), you may use IRS Form 1040-ES to determine the amount of tax you should pay each quarter. This document contains a worksheet that will walk you through the calculation and blank vouchers for making your quarterly payments. If you prefer to pay your estimated taxes online, visit the IRS Paying Your Taxes web page and click "Direct Pay".

• TurboTax also has a free tool--TaxCaster--that helps you estimate your 2018 taxes.