Side gig workers! Help me out!

[AbuHossam]

The Question
I signed up for a few extra side gigs to help out in Baby Step 2. I'm now a part of Rover, DoorDash, AND Uber Eats.

When it comes to estimating quarterly taxes, let's say I make more than 600$ with DoorDash, but less than 600$ for the other two companies. Am I paying estimated quarterly taxes on the total of all of these companies together? Or is it a company by company basis?

Also is the threshold 400$ or 600$ because I'm seeing mixed results on the internet. Thanks!

ANSWER 1
I just did my taxes...I gave them my 1099 from Uber Eats & a print out of my miles driven (curtosey of Uber Eats). And that & my W2 from my 9 to 5 job...got me $2200.00 back. Woo-hoo!!


ANSWER 2
When it comes to the total tax liability at the end of the year, you're liable for the SE tax on all combined 1099 profits. In addition, all 1099 profits will be included in your income and you'll owe income tax on the profits.

Now, notice I said profits. I'm hoping that you are keeping a log of mileage that you're using so you can deduct the car mileage costs from the 1099 income on the Schedule C. For quarterly estimates of your profits, I would send in roughly 30% because of the 15.3% SE tax and 15% for income tax.


ANSWER 3
You will get a 1099 from each one where you make $600+. Your schedule C will show the total of all 1099’s and side income not reported with a 1099 then you will be able to offset that amount with any out of pocket business expenses (probably only mileage with the side hustles you are doing). If I were you, I would go ahead and put about 25% of everything you make on the side in a saving account just for taxes. Then if you don’t need it all when you file, you can throw it at your debt.



ANSWER 4
You would pay on your total tax bill for the year...best estimate. For your 1099 side gigs, I would put aside 30% minimum of your net earnings minus expenses. Alternatively, you can have that amount withheld from your main job, which avoids quarterly estimates. As long as the IRS is getting their money throughout the year as you earn it, they don't care what the source is.