Hello! I made less than $600 driving for uber this past quarter (Jan. 1-March 31) and want to know if I need to file and pay quarterly taxes on this amount.
I also have other income, but those companies take care of my tax payments based on the information I put on my W-4 and I will files taxes at the end of the year for those.
I don't plan on earning too much more income from uber this next year; however, I want to ensure I cover my bases and pay what I need to.
Thanks!
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It depends. If you are concerned about paying penalties those are calculated based on your income as a whole. If this is the concern, you need to make sure that your withholding will account for all the necessary tax payments as indicated below. If all of your other income is covered by withholding, it wouldn't be necessary to make estimated tax payments on just the $600 in income, as the tax on that would definitely be less than the $1000 minimum mentioned below.
Generally, most taxpayers will avoid an underpayment penalty if they either owe less than $1,000 in tax after subtracting their withholding and refundable credits or if they paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller.
Everyone likes to get refund, but if you can avoid penalties, by paying in at least 100% of your 2019 tax liability (through withholding or estimated payments,) even if you don't end up with a refund, you have done a good job of tax planning.
When you get a refund (by paying in too much) you are just letting the government hold your money for you, generally interest-free.
It depends. If you are concerned about paying penalties those are calculated based on your income as a whole. If this is the concern, you need to make sure that your withholding will account for all the necessary tax payments as indicated below. If all of your other income is covered by withholding, it wouldn't be necessary to make estimated tax payments on just the $600 in income, as the tax on that would definitely be less than the $1000 minimum mentioned below.
Generally, most taxpayers will avoid an underpayment penalty if they either owe less than $1,000 in tax after subtracting their withholding and refundable credits or if they paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller.
Everyone likes to get refund, but if you can avoid penalties, by paying in at least 100% of your 2019 tax liability (through withholding or estimated payments,) even if you don't end up with a refund, you have done a good job of tax planning.
When you get a refund (by paying in too much) you are just letting the government hold your money for you, generally interest-free.
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