Tax Tips for 2018: Estimated Payments
The growth of the gig-economy — services like Uber and Lyft — has provided many opportunities to generate extra income. Yet the taxes can get complicated because you are a contractor, not an employee. This means you must make quarterly filings for your income taxes, Social Security and Medicare.
If you don’t do this, the penalties aren’t necessarily severe, but they’re still there. The problem is many people don’t make their estimated payments throughout the year, then get an unexpected surprise when they file their taxes — and they might not have enough money saved up to pay the IRS everything that’s owed.
An app like QuickBooks Self-Employed makes it super easy to handle your estimated taxes. The app hooks into your bank account and seamlessly allocates the expenses into the right categories.