Quarterly Taxes

I am new to mystery shopping this year and wanted to know if we are supposed to be paying taxes quarterly? I also hold a full-time job so I am not sure what the protocol is. I don’t want to be penalized next year at tax time for not doing so.

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You can if you want too. There is a form you download from IRS, and pay based on what your estimated income will be. At end of year all what you paid is credited to what you may owe or not.
I always wait until end of year. Ive never had a penalty for doing that.
As a mystery shopper, you are considered self-employed, which means that you are responsible for paying your taxes, including both income tax and self-employment tax. If you expect to owe more than $1,000 in taxes for the year, then you are required to make estimated tax payments quarterly.

If you also hold a full-time job, your tax liability will depend on your total income from all sources. It's possible that your employer withholds enough taxes from your paycheck to cover your total tax liability, in which case you may not need to make estimated tax payments.

To avoid being penalized for underpayment of taxes, it's a good idea to estimate your tax liability for the year and make quarterly payments to the IRS. You can use Form 1040-ES to estimate your tax liability and calculate your estimated tax payments.

Alternatively, you can consult with a tax professional who can provide guidance on your specific situation and help you avoid any potential tax penalties.
So beautifully written.

@superwendel wrote:

As a mystery shopper, you are considered self-employed, which means that you are responsible for paying your taxes, including both income tax and self-employment tax. If you expect to owe more than $1,000 in taxes for the year, then you are required to make estimated tax payments quarterly.

If you also hold a full-time job, your tax liability will depend on your total income from all sources. It's possible that your employer withholds enough taxes from your paycheck to cover your total tax liability, in which case you may not need to make estimated tax payments.

To avoid being penalized for underpayment of taxes, it's a good idea to estimate your tax liability for the year and make quarterly payments to the IRS. You can use Form 1040-ES to estimate your tax liability and calculate your estimated tax payments.

Alternatively, you can consult with a tax professional who can provide guidance on your specific situation and help you avoid any potential tax penalties.

Shopping Arkansas, Louisiana, & Mississippi.
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