IRS imposes 8% penalty on underpaid estimated taxes for gig workers
Key Questions
When are quarterly estimated taxes due for gig workers?
Quarterly estimated taxes are due June 15. Self-employed and gig workers must meet this deadline to avoid penalties.
What penalty applies for underpaying estimated taxes?
An 8% IRS penalty plus daily interest applies to underpayments. This rate has risen from near-zero levels during the pandemic.
How can gig workers avoid the IRS penalty on estimated taxes?
Safe harbor rules and the annualized income method can help avoid penalties. These options allow workers to adjust payments based on their income patterns.
Quarterly estimated taxes due June 15. Self-employed and gig workers who underpay face an 8% IRS penalty plus daily interest. Safe harbor rules and annualized income method can help avoid penalties. This is a major policy change affecting all gig platform workers.
Sources (1)
Updated Jun 1, 2026