GigMoney Playbook

Category: Taxes & Deadlines

Plain-English guides to what gig workers and side hustlers owe and when it’s due, from quarterly estimated taxes and self-employment tax to what happens when you miss a deadline. Educational only, with links to the IRS sources so you can check the details yourself.

  • Made Less Than $600 (or $2,000) on DoorDash or Uber? You May Still Owe Tax (the $400 Rule)

    Educational only, not tax advice. GigMoney Playbook explains general IRS rules in plain English. The author is not a CPA, enrolled agent, attorney, financial advisor, or tax preparer. The examples below are hypothetical, and your numbers will be different. Read our full disclaimer.

    Last updated: October 24, 2026. All figures checked against IRS.gov and SSA.gov on that date.

    “If you made less than $600, you don’t have to report it.” It’s a common line in driver forums, and it mixes up two rules. The $600 figure was about when a company has to send you a tax form, not whether you owe tax. For money paid in 2026, that form threshold isn’t even $600 anymore. Here’s the rule that actually matters for small gig earnings, the $400 self-employment rule, with hypothetical examples.

    Quick answer: Gig income is taxable whether or not you get a 1099 (IRS Gig economy tax center). If your net earnings from self-employment are $400 or more, you generally have to file a federal return and pay self-employment tax, even if the gig is a side job (IRS: Manage taxes for your gig work). Because of how net earnings are figured, that works out to roughly $433.14 of net profit after expenses such as mileage.

    Where the “$600 rule” came from, and why it’s now $2,000

    Businesses that pay independent contractors file information returns, such as Form 1099-NEC, to report those payments to the IRS. For payments made before 2026, the 1099-NEC threshold was $600. For payments made in 2026, it’s $2,000, and after 2026 it will be adjusted for inflation (IRS: Am I required to file a Form 1099?). The 2026 instructions tell payers to file a 1099-NEC for anyone paid “at least $2,000” for services (Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026)). The change came from Section 70433 of the 2025 budget law, Public Law 119-21 (Public Law 119-21; IRS Pub. 1099 (2026)).

    Some gig payments are reported on Form 1099-K instead. Payment apps and online marketplaces generally only have to send one when you receive more than $20,000 and more than 200 transactions in a year (IRS: Understanding your Form 1099-K). We cover that in detail in The 1099-K threshold is back to $20,000.

    Put together, a lot of part-time drivers won’t get any 1099 for 2026. That doesn’t change what they owe. The IRS says you must report all income “even if you don’t receive Forms 1099” (IRS: Manage taxes for your gig work), and that the 1099-K threshold “doesn’t affect whether payments are taxable or whether a tax return must be filed” (IRS Fact Sheet 2025-08, Q7).

    The rule that actually matters: $400 of net self-employment earnings

    The IRS’s Form 1040 instructions list “net earnings from self-employment of at least $400” as one of the situations where you must file a return, no matter what your other income is (Form 1040 instructions, Chart C). The same $400 line decides whether you owe self-employment (SE) tax: “You must pay SE tax if you had net earnings of $400 or more as a self-employed person” (Instructions for Schedule SE).

    SE tax is 15.3%: 12.4% for Social Security and 2.9% for Medicare (IRS: Self-employment tax). It’s the tax an employer would split with you on a W-2 job. As a contractor, you pay both halves.

    “Net earnings” isn’t your gross pay, or even your profit

    There are two steps between what the app paid you and the $400 test:

    1. Subtract business expenses to get net profit (Schedule C). For most drivers, the biggest one is mileage: 72.5¢ per business mile for January 1 – June 30, 2026, and 76¢ for July 1 – December 31, 2026 (IRS Standard mileage rates).
    2. Multiply net profit by 92.35%. Schedule SE, line 4a, does this, and line 4c says that if the result is less than $400, “stop; you don’t owe self-employment tax” (Schedule SE (Form 1040)).

    So the dividing line in net-profit terms is $400 ÷ 0.9235 ≈ $433.14. That’s our arithmetic, not an IRS-published figure. The newest Schedule SE is the 2025 version; the 2026 form isn’t out yet. If you’re right around this line, check the 2026 Schedule SE once it’s published.

    For our full walk-through of how mileage turns gross pay into profit, see How much a DoorDash driver should set aside for taxes.

    Three hypothetical drivers

    These examples are hypothetical. The drivers aren’t real people. All three are single, take the standard deduction, use the standard mileage rate, and claim no other expenses or credits.

    Line Driver A Driver B Driver C
    Other income None None $45,000 W-2 job
    2026 gig earnings (gross, tips included) $520 $1,200 $1,200
    Business miles 150 (before July 1) 500 (after July 1) 500 (after July 1)
    Mileage deduction $108.75 $380.00 $380.00
    Net profit $411.25 $820.00 $820.00
    × 92.35% = net SE earnings $379.79 $757.27 $757.27
    Over $400? No Yes Yes
    SE tax (15.3%) $0 $115.86 $115.86
    Extra federal income tax from the gig $0 $0 About $73.16
    Federal tax from the gig $0 $115.86 About $189.02
    1099-NEC required for 2026? No (under $2,000) No (under $2,000) No (under $2,000)

    How the numbers work:

    • Driver A made less than $600 and also landed under the $400 line after mileage, so there’s no SE tax. A’s total income is far below the $16,100 single standard deduction for 2026 (IR-2025-103), so A owes no income tax on it either. A may not have to file at all, unless another filing rule applies (see the next section).
    • Driver B also never gets a 1099, but net SE earnings of $757.27 are over $400. B must file a return with Schedule SE and owes $93.90 Social Security plus $21.96 Medicare tax = $115.86. B has no income tax because B’s income is under the standard deduction.
    • Driver C has the same gig numbers plus a W-2 job, so the gig profit is also hit by income tax. Half of SE tax ($57.93) is deductible, leaving $762.07. The qualified business income (QBI) deduction takes 20% of that, or $152.41 (IRS QBI page). The new $400 minimum QBI deduction doesn’t apply because it requires at least $1,000 of QBI (Form 1040-ES (2026)). The remaining $609.66 is taxed at 12%, because C’s wages alone ($45,000 − $16,100 = $28,900 taxable) already sit in the 12% bracket ($12,400 – $50,400) (2026 Tax Rate Schedule X). That’s $73.16.

    The takeaway: the 1099 threshold and the tax rules are separate. Drivers B and C owe tax on money no company reported.

    Under $400? Check these before you skip filing

    Landing under the $400 line means no SE tax. It doesn’t automatically mean you can skip the return or leave the money off it:

    • You may have to file for another reason. Chart C of the 1040 instructions lists other triggers, such as owing certain special taxes, or having advance premium tax credit payments made for Marketplace health coverage for you or your family (Form 1040 instructions, Chart C). Your total gross income can also put you over the general filing threshold.
    • If you file, report the gig income. Gig work income is reported on Schedule C even when you didn’t get a 1099 (IRS: Manage taxes for your gig work). Being under $400 only affects SE tax. It doesn’t exclude the money from income tax.
    • W-2 workers with a small side gig are the ones most likely to owe a little income tax on tiny gig profits, like Driver C, because their wages already use up the standard deduction.

    Why filing can work in your favor

    • Social Security credits. You earn credits from wages and self-employment income. In 2026, one credit takes $1,890 of covered earnings, and you can earn up to four a year ($7,560). Most people need 40 credits to qualify for retirement benefits (SSA: Social Security credits). SE tax you pay on gig profit counts toward this.
    • Refundable credits. Schedule C filers may qualify for credits like the Earned Income Tax Credit, which can reduce your tax or even produce a refund (IRS: Self-employment tax). You can only claim it by filing.

    No 1099? How to figure your income yourself

    • Use the platform’s earnings records and save a copy of your yearly totals after December 31.
    • Count tips. Tips are income and are part of your SE earnings. Some delivery and rideshare tips may qualify for the new “no tax on tips” income tax deduction, but that deduction doesn’t reduce SE tax. Our DoorDash set-aside guide explains the details and limits (IRS: No tax on tips).
    • Keep a mileage log. The IRS expects a log, diary, or other written record of business miles (IRS Pub. 463). At small income levels, mileage is often what decides whether you land above or below $400.
    • Check every app. The $400 test uses your combined net earnings from self-employment, not each app separately. Schedule SE adds up all your Schedule C net profit on line 2 (Schedule SE). $300 from one app and $300 from another can put you over the line.

    Do small earners need quarterly payments?

    Usually not at these amounts. Estimated payments are generally required only if you expect to owe at least $1,000 for the year after withholding and refundable credits (Form 1040-ES (2026)). If you also have a W-2 job, you can cover a small gig’s tax by raising your paycheck withholding instead (IRS: Manage taxes for your gig work). If your side income is growing, read our quarterly estimated taxes guide. If you already fell behind, see Missed a quarterly estimated tax payment? What to do next.

    State and local taxes follow their own rules, so check your state’s tax agency too.

    Tracking miles? Our 2026 Mileage Log ($8, sold on Etsy) makes it easy to log trips and total your deduction. It’s an educational tool, not tax advice.

    FAQ

    Do I have to report DoorDash income under $600?

    If you’re filing a return, yes. All gig income is reportable whether or not you get a 1099 (IRS Gig economy tax center). Whether you have to file depends on the $400 net SE earnings rule and the other filing rules in the Form 1040 instructions.

    Will DoorDash or Uber send me a 1099 if I made under $2,000 in 2026?

    A payer isn’t required to send a 1099-NEC for 2026 payments under $2,000 (1099-MISC/NEC instructions), and a payment app or marketplace isn’t required to send a 1099-K unless you top $20,000 and 200 transactions (IRS). Platforms can still choose to send forms below those thresholds. Either way, the form doesn’t change what you owe.

    Is the $400 based on gross earnings?

    No. It’s based on net earnings from self-employment: your profit after business expenses, multiplied by 92.35% (Schedule SE).

    I made $500 and drove a lot of miles. Do I owe anything?

    Possibly nothing. If your mileage and other expenses bring net profit under about $433.14, your net SE earnings are under $400 and you don’t owe SE tax. You may still owe income tax if you have other income, as Driver C shows above.

    Sources

  • How Much Should a DoorDash Driver Set Aside for Taxes? (With a Worked Example)

    Educational only, not tax advice. GigMoney Playbook explains general IRS rules in plain English. The author is not a CPA, enrolled agent, attorney, financial advisor, or tax preparer. The examples below are hypothetical, and your numbers will be different. Read our full disclaimer.

    Last updated: October 23, 2026. All figures checked against IRS.gov on that date.

    DoorDash doesn’t take taxes out of your payouts, so when you file, the whole bill lands on you. The fix is to set money aside as you earn it. How much should that be? It depends on your profit, not your gross pay, and your miles make a huge difference. Below, we walk through a fully worked 2026 example step by step using IRS numbers, then turn it into a simple percentage you can use.

    Quick answer: In the two hypothetical examples below, total federal tax (income tax plus self-employment tax) came to about 16%–19% of net profit, or about 10%–13% of gross earnings. A reasonable starting rule for drivers at these income levels: set aside 15%–20% of net profit for federal taxes, plus whatever your state and local taxes require. Adjust it to your own situation, as explained below.

    Why DoorDash drivers owe more than they expect

    Dashers are paid as independent contractors, and the IRS lists driving for deliveries as a classic kind of gig work (IRS Gig economy tax center). With no employer withholding, you owe two federal taxes on your profit:

    • Self-employment (SE) tax: 15.3%, made up of 12.4% Social Security and 2.9% Medicare (IRS: Self-employment tax). An employer would normally pay half of this. When you’re self-employed, you pay all of it.
    • Regular federal income tax, figured with the brackets and the standard deduction.

    You also generally have to make quarterly estimated tax payments if you expect to owe $1,000 or more (Form 1040-ES (2026)).

    The 2026 numbers you need

    Item 2026 figure Source
    Standard mileage rate, Jan. 1 – June 30 72.5¢ per business mile IR-2025-128
    Standard mileage rate, July 1 – Dec. 31 76¢ per business mile (raised midyear) IRS Standard mileage rates; Announcement 2026-11
    Share of net profit subject to SE tax 92.35% Form 1040-ES (2026)
    SE tax rate 15.3% (12.4% + 2.9%) IRS SE tax page
    Social Security wage base $184,500 Form 1040-ES (2026)
    Standard deduction (single) $16,100 IR-2025-103
    Single brackets (lower end) 10% up to $12,400; 12% over $12,400 up to $50,400; 22% over $50,400 up to $105,700 2026 Tax Rate Schedule X
    QBI deduction Up to 20% of qualified business income, with limits; new $400 minimum deduction starting in 2026 IRS QBI page; Form 1040-ES (2026)

    Heads up on mileage: 2026 has two rates. Business miles driven before July 1, 2026 use 72.5¢, and miles driven on or after July 1 use 76¢ (IRS Announcement 2026-11). If you track miles by date, you can apply the correct rate to each half of the year.

    Worked example: a hypothetical full-time Dasher

    This example is hypothetical. “Driver A” isn’t a real person. The numbers are made up to show how the math works.

    The assumptions

    • Files as single, takes the standard deduction, and has no dependents.
    • 2026 DoorDash earnings, tips included: $40,000 gross.
    • 20,000 business miles, logged evenly: 10,000 from January through June and 10,000 from July through December.
    • Uses the standard mileage rate and claims no other business expenses, to keep the example simple.
    • No W-2 job, no other income, and no tax credits. Driver A doesn’t claim the tips deduction (more on that below).

    Step 1: Mileage deduction

    • 10,000 miles × $0.725 = $7,250
    • 10,000 miles × $0.76 = $7,600
    • Total mileage deduction = $14,850

    Rates: IRS Standard mileage rates.

    Step 2: Net profit

    $40,000 − $14,850 = $25,150 net profit. This is what would show on Schedule C, line 31, which is the number SE tax starts from (Form 1040-ES (2026), SE worksheet note).

    Step 3: Self-employment tax

    • $25,150 × 92.35% = $23,226.03 in net earnings from self-employment
    • Social Security: $23,226.03 × 12.4% = $2,880.03
    • Medicare: $23,226.03 × 2.9% = $673.55
    • SE tax = $3,553.58

    This follows the 2026 Self-Employment Tax and Deduction Worksheet in Form 1040-ES.

    Step 4: Adjusted gross income (AGI)

    Half of SE tax can be deducted: $3,553.58 × 50% = $1,776.79 (Form 1040-ES (2026)).
    AGI = $25,150 − $1,776.79 = $23,373.21

    Step 5: Standard deduction

    $23,373.21 − $16,100 = $7,273.21 taxable income before the QBI deduction (IR-2025-103).

    Step 6: QBI deduction

    The QBI deduction can be up to 20% of qualified business income. Generally, QBI is your business profit after deductions such as the deductible part of SE tax. The deduction is also capped at 20% of taxable income (IRS QBI page).

    • 20% of QBI: 20% × $23,373.21 = $4,674.64
    • Cap: 20% × $7,273.21 = $1,454.64, which is the smaller amount
    • The new 2026 minimum deduction of $400 (for at least $1,000 of QBI from an active business you materially participate in) doesn’t come into play here because $1,454.64 is already higher (Form 1040-ES (2026); IRS QBI page).

    Taxable income = $7,273.21 − $1,454.64 = $5,818.57

    Step 7: Federal income tax

    All of it falls in the 10% bracket (up to $12,400 for single filers): $5,818.57 × 10% = $581.86 (2026 Tax Rate Schedule X).

    Step 8: Total and set-aside rate

    Line Hypothetical Driver A
    Gross earnings $40,000.00
    Mileage deduction −$14,850.00
    Net profit $25,150.00
    SE tax $3,553.58
    Federal income tax $581.86
    Total federal tax $4,135.44
    As % of net profit 16.4%
    As % of gross 10.3%
    About per week (÷ 52) $79.53

    Notice that SE tax makes up most of Driver A’s bill. That’s common at lower profit levels, because the standard deduction and QBI shrink the income tax while SE tax applies from the first dollar of net earnings.

    A second hypothetical: higher earnings

    Also hypothetical. “Driver B” has the same setup, but with $70,000 gross and 30,000 miles, split 15,000 before July 1 and 15,000 after.

    Line Hypothetical Driver B
    Mileage deduction (15,000 × $0.725 + 15,000 × $0.76) $22,275.00
    Net profit $47,725.00
    SE tax ($47,725 × 92.35% × 15.3%) $6,743.33
    AGI (net profit − $3,371.66 half-SE deduction) $44,353.34
    Taxable income before QBI (− $16,100) $28,253.34
    QBI deduction (capped at 20% of $28,253.34) $5,650.67
    Taxable income $22,602.67
    Income tax ($1,240 + 12% of amount over $12,400) $2,464.32
    Total federal tax $9,207.65
    As % of net profit / gross 19.3% / 13.2%

    Rates and brackets come from the same IRS sources cited above. As profit rises, more of it lands in the 12% bracket (and eventually 22%), so the percentage creeps up.

    Turning the examples into a simple rule

    • Federal, as a share of net profit: about 15%–20% for single drivers in roughly the $25,000–$50,000 net-profit range, based on the examples above.
    • Add state and local tax on top, using your state’s rules.
    • Lean higher (20%–25%+) if you have a W-2 job or other income, a working spouse, net profit high enough to reach the 22% bracket, or you’d simply like a cushion. Other income can push your gig profit into higher brackets.
    • Prefer a percentage of gross? It only works if your miles-to-earnings ratio stays about the same. Drivers with fewer miles per dollar have more profit, so a percentage of gross understates what they owe.

    Then pay it in. For Driver A, paying the full projected tax in four equal installments works out to about $1,034 each. Alternatively, Driver A could aim for the safe harbor based on last year’s tax, which is explained in our quarterly estimated taxes guide (Form 1040-ES (2026)).

    What can change your number

    “No tax on tips”

    The IRS lists “app/platform-based delivery person” under Treasury Tipped Occupation Code 804, goods delivery people (IRS list of tipped occupations). Qualified tips may be deductible up to $25,000. For self-employed people, the deduction can’t exceed net income from the business where the tips were earned, and it phases out above $150,000 of modified AGI ($300,000 joint) (IRS: No tax on tips). Some limits to know:

    • The tips deduction is claimed on Schedule 1-A (Form 1040-ES (2026)). SE tax is still figured on your full Schedule C net profit, tips included, so this deduction lowers income tax but not SE tax (see also Congressional Research Service).
    • Tip income excluded under this deduction doesn’t count as QBI (IRS QBI page), which partly offsets the benefit.

    Because Driver A’s income tax was only $581.86, the most this deduction could save Driver A is that amount. The SE tax portion stays the same. Leaving it out, as the example does, gives a more conservative set-aside.

    Tracking miles and other expenses

    • Keep a mileage log, diary, or other written record (IRS Pub. 463).
    • If you use the standard mileage rate, you can also deduct business parking fees and tolls (Pub. 463).
    • To use the standard mileage rate on a car you own, you must choose it in the first year the car is used for business (IR-2025-128).
    • Other business costs, like the business share of your phone, can lower your profit further. See Pub. 463 and IRS: Manage taxes for your gig work.

    Credits and state taxes

    Credits like the Earned Income Tax Credit can reduce what you owe if you qualify (IRS SE tax page). These examples leave out all credits. State taxes vary. Ohio drivers, for example, may need to make Ohio estimated payments if their expected Ohio tax, after credits and withholding, is more than $500 (Ohio 2026 IT 1040 ES instructions). See the Ohio Department of Taxation for details.

    Want a shortcut? The GigMoney Playbook 2026 Quarterly Estimated Tax Worksheet is a spreadsheet we sell on Etsy ($12) that estimates your quarterly payments and how much to set aside from each payout. It’s an educational tool, not tax advice. Tracking miles? Our 2026 Mileage Log ($8) makes it easy to log trips and total your deduction.

    FAQ

    Is 30% too much to set aside?

    For the hypothetical drivers above, 30% of net profit would have been well above their federal tax. The extra would just be savings you get back later. That said, other income, a higher bracket, or state taxes can push your real rate up, so a cushion isn’t a bad idea. Running your own numbers through the Form 1040-ES worksheet is the most reliable way to know.

    Do I pay tax on my gross DoorDash pay or my profit?

    Your profit. SE tax starts from Schedule C net profit, which is your earnings minus business expenses such as the mileage deduction (Form 1040-ES (2026)). Your gross earnings still have to be reported in full (IRS).

    What mileage rate do I use for 2026?

    Use 72.5¢ per business mile for January 1 through June 30, 2026, and 76¢ for July 1 through December 31, 2026 (IRS Standard mileage rates).

    Are tips taxed for Dashers?

    Tips count as income and are subject to SE tax. Qualified tips may be deductible for income tax purposes under the “no tax on tips” rules, within the limits described above (IRS).

    When is my next payment due?

    The next federal estimated payment is due January 15, 2027, for income earned September 1 through December 31, 2026 (Form 1040-ES (2026)). See our due dates and how-to-pay guide.

    Sources

  • Quarterly Estimated Taxes for Gig Workers: 2026–27 Due Dates and How to Pay

    Educational only, not tax advice. GigMoney Playbook explains general IRS rules in plain English. The author is not a CPA, enrolled agent, attorney, financial advisor, or tax preparer. Your situation may be different, so check with a qualified tax professional before acting. Read our full disclaimer.

    Last updated: October 23, 2026. All figures checked against IRS.gov on that date.

    If you drive for DoorDash, Uber, or Instacart, or you freelance on the side, nobody is taking taxes out of your pay. That job falls to you, and the IRS expects it in installments during the year, not one big check in April. This guide covers quarterly estimated taxes for gig workers: who has to pay, the 2026–27 due dates, how to stay clear of the underpayment penalty, and exactly how to send a payment.

    Quick answer: The next federal due date is January 15, 2027. That payment covers income you earned from September 1 through December 31, 2026 (IRS Form 1040-ES (2026); IRS: Manage taxes for your gig work).

    What are quarterly estimated taxes?

    The IRS describes estimated tax as the way you pay tax on income that has no withholding, and it specifically lists “earnings from self-employment, including gig economy work” (Form 1040-ES (2026)). Estimated payments cover more than income tax. They also cover self-employment tax, which is the Social Security and Medicare tax that independent contractors pay themselves (IRS: Estimated taxes).

    A few basics to know up front:

    Do you have to make estimated payments?

    For 2026, you generally have to pay estimated tax when both of these are true (Form 1040-ES (2026)):

    1. You expect to owe at least $1,000 for 2026 after subtracting withholding and refundable credits.
    2. You expect your withholding and refundable credits to come in below the smaller of 90% of your 2026 tax or 100% of the tax shown on your 2025 return.

    The “no tax last year” exception

    You don’t have to pay estimated tax for 2026 if you were a U.S. citizen or resident alien for all of 2025 and had no tax liability for the full 12-month 2025 tax year (Form 1040-ES (2026)).

    Have a W-2 job too?

    If you also get a paycheck, the IRS says you may be able to skip estimated payments on your gig income by having your employer withhold more. You’d file a new Form W-4, and the Tax Withholding Estimator can help you pick the amount (IRS: Manage taxes for your gig work).

    2026–27 estimated tax due dates

    The four “quarters” aren’t equal in length. The second covers only two months, and the fourth covers four (IRS: Manage taxes for your gig work).

    Tax year 2026 (confirmed by the IRS)

    Payment Income earned during Due date Status as of Oct. 23, 2026
    1st Jan. 1 – Mar. 31, 2026 April 15, 2026 Passed
    2nd Apr. 1 – May 31, 2026 June 15, 2026 Passed
    3rd June 1 – Aug. 31, 2026 Sept. 15, 2026 Passed
    4th Sept. 1 – Dec. 31, 2026 Jan. 15, 2027* Next up

    Sources: Form 1040-ES (2026) for the dates; IRS gig work page for the payment periods.

    *You can skip the January 15, 2027 payment if you file your 2026 return by February 1, 2027 and pay the full balance with it (Form 1040-ES (2026)).

    Tax year 2027 (expected, not yet confirmed)

    The IRS hadn’t released the 2027 Form 1040-ES as of October 23, 2026. The dates below follow the standard IRS schedule of April 15, June 15, September 15, and January 15, plus the rule that a deadline falling on a Saturday, Sunday, or legal holiday moves to the next business day (IRS: Manage taxes for your gig work). Check them against the 2027 form once it’s out.

    Payment Income earned during Expected due date
    1st Jan. 1 – Mar. 31, 2027 April 15, 2027 (Thursday)
    2nd Apr. 1 – May 31, 2027 June 15, 2027 (Tuesday)
    3rd June 1 – Aug. 31, 2027 Sept. 15, 2027 (Wednesday)
    4th Sept. 1 – Dec. 31, 2027 January 2028. Jan. 15, 2028 is a Saturday, so the deadline moves to the next business day. Confirm the exact date with the IRS.

    Tip: You don’t have to stick to four payments. The IRS says you can pay weekly, every two weeks, or monthly, as long as enough has gone in by the end of each period (IRS: Estimated taxes). Plenty of drivers find a small payment after each weekly payout easier than coming up with a large quarterly one.

    How to avoid the underpayment penalty: the safe harbor rules

    The IRS can charge a penalty if you don’t pay enough or pay late, even if you end up getting a refund (IRS: Estimated taxes). The penalty runs on each underpayment for every day it stays unpaid (Form 1040-ES (2026)).

    Most people avoid the penalty if any one of these is true (IRS: Estimated taxes; Pub. 505 (2026)):

    • You owe less than $1,000 after withholding and credits, or
    • You paid at least 90% of this year’s tax, or
    • You paid at least 100% of last year’s tax. That rises to 110% if your 2025 AGI was over $150,000 ($75,000 if married filing separately) (Form 1040-ES (2026)).

    Why the “last year” option helps gig workers: When your income jumps around, guessing 90% of this year’s tax is hard. The prior-year number is already printed on last year’s return, so you know the target from day one. Keep in mind that the safe harbor only protects you from the penalty. If you earned more this year, you’ll still owe the rest when you file (Form 1040-ES (2026), worksheet line 12c caution).

    Uneven income? Look at annualizing

    If most of your money comes in during one part of the year, the annualized income installment method may lower or eliminate some of your required payments. You file Form 2210 with Schedule AI to use it (Form 1040-ES (2026); Pub. 505, chapter 2).

    How much should you pay?

    The official tool is the 2026 Estimated Tax Worksheet inside Form 1040-ES. Some 2026 numbers that go into it:

    • Standard deduction: $16,100 single, $32,200 married filing jointly, $24,150 head of household (IRS, IR-2025-103).
    • Federal brackets stay at 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For a single filer, 10% applies to taxable income up to $12,400 and 12% to the amount over $12,400 up to $50,400 (IR-2025-103; 2026 Tax Rate Schedules in Form 1040-ES).
    • Social Security wage base: the 12.4% part of SE tax applies to the first $184,500 of combined wages and self-employment earnings in 2026 (Form 1040-ES (2026)).
    • Half of your SE tax is deductible when you figure adjusted gross income (IRS: Self-employment tax).

    To see these numbers worked through with real math, read How Much Should a DoorDash Driver Set Aside for Taxes? (With a Worked Example).

    How to pay: step by step

    Paying from your bank account directly through the IRS is free (IRS Payments). Here are the main options.

    Option 1: Your IRS Online Account (the IRS’s preferred option)

    1. Go to IRS.gov/Account and sign in, or create an account. New users should have a photo ID ready for identity verification.
    2. Choose to make a payment from your bank account, and pick estimated tax for tax year 2026.
    3. Pay the same day, or schedule the payment up to 365 days ahead.
    4. Your history shows up to 5 years of payments, estimated payments included, so you can confirm it went through.

    Source: IRS: Online account for individuals; IRS Payments.

    Option 2: IRS Direct Pay (no login needed)

    1. Go to IRS Direct Pay and select Make a payment under personal tax payments.
    2. Choose the payment type and reason (estimated tax, Form 1040-ES), then enter tax year 2026.
    3. Verify your identity with details from a prior year’s return. Direct Pay can’t confirm you with the current-year return you’re paying toward.
    4. Enter your bank information, review, and sign.
    5. Save your confirmation number or have it emailed to you. You’ll need it to look up, change, or cancel the payment. Changes or cancellations are allowed until two business days before the payment date.

    Source: IRS: Direct Pay help. One catch: Direct Pay won’t work if you’ve never filed a federal return or you’re paying toward your first one. Use your Online Account or another method instead.

    Option 3: EFTPS (only if you already have an account)

    The IRS’s Electronic Federal Tax Payment System is free, but individual taxpayers can no longer open new EFTPS accounts. Existing users can keep using it for now, and the IRS points individuals to the Online Account instead (IRS: EFTPS).

    Option 4: Debit card, credit card, or digital wallet

    These work too, but the third-party processors charge a fee (Form 1040-ES (2026); IRS Payments).

    Option 5: Check or money order by mail

    1. Use the 2026 payment voucher from Form 1040-ES. There’s one voucher for each due date.
    2. Make it payable to “United States Treasury,” and write “2026 Form 1040-ES” and your SSN on it.
    3. Mail it to the address for your state listed in the form. For example, Ohio residents send it to Internal Revenue Service, P.O. Box 1300, Charlotte, NC 28201-1300.

    Watch the postmark. The IRS warns that the postmark is the date USPS processes your envelope at a facility, which may be later than the day you drop it in the mailbox (Form 1040-ES (2026)). If you’re mailing close to the deadline, paying online is the safer choice.

    Don’t forget state estimated taxes

    Many states with an income tax run their own estimated payment system, and it’s separate from the IRS. Check your state’s tax agency site for its rules.

    Ohio drivers: Ohio has its own estimated payments. The Ohio Department of Taxation’s 2026 instructions say you should make them if your expected Ohio tax, minus credits and Ohio withholding, is more than $500. The 2026 Ohio due dates match the federal ones: April 15, June 15, and Sept. 15, 2026, then Jan. 15, 2027 (Ohio 2026 IT 1040 ES instructions). Details and payment options are on the Ohio Department of Taxation estimated payments page.

    Missed a payment? What to do now

    • Pay as soon as you can. The penalty adds up day by day while a payment is unpaid, so paying earlier keeps it smaller (Form 1040-ES (2026)).
    • Refigure your remaining payments using the worksheet and the “amended estimated tax” steps in Pub. 505, chapter 2.
    • Check for a waiver. The IRS may waive the penalty in certain cases, such as a casualty, disaster, or other unusual circumstance (IRS: Estimated taxes).

    Want a shortcut? The GigMoney Playbook 2026 Quarterly Estimated Tax Worksheet is a spreadsheet we sell on Etsy ($12) that estimates your quarterly payments and how much to set aside from each payout. It’s an educational tool, not tax advice.

    FAQ

    Do I have to pay quarterly taxes if I only drive part-time?

    Possibly. The test is how much tax you’ll owe, not how many hours you work. If you expect to owe $1,000 or more after withholding and credits, and none of the exceptions apply, estimated payments are generally required (Form 1040-ES (2026)). Separately, $400 or more in net self-employment earnings means you must file a return (IRS).

    I didn’t get a 1099. Do I still owe tax on that income?

    Yes. The IRS says gig income has to be reported even if it isn’t on a 1099-K, 1099-NEC, or other form (IRS Gig economy tax center).

    What’s the easiest way to pay?

    For most people, the IRS Online Account or Direct Pay. Both are free, both take payments straight from a U.S. bank account, and both can schedule payments up to 365 days ahead (IRS: Direct Pay help).

    Will I get a penalty if I’m getting a refund anyway?

    You still can. The IRS says late or too-small estimated payments can trigger a penalty even if you’re due a refund when you file (IRS: Estimated taxes).

    Sources