Which of the following statements about gig workers and estimated taxes is accurate? Taxpayers: With side hustles should estimate their total combined income and either adjust Form W-2 withholdings or make estimated payments to keep up with the pay-as-you-go tax system. Who have a Form W-2 job in addition to a side gig never need to worry about estimated payments. Since they are having taxes withheld at their day job, they cannot be hit with penalties for underpayment. Can estimate their total combined tax in the fourth quarter of the tax year and make an estimated payment by January 15 to cover any withholding shortfall. This will always prevent penalties from being assessed. Must make estimated payments on the four specified dates. There is no other way to avoid underpayment penalties.
Added by Luz M.
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The question is about the accuracy of statements regarding gig workers and estimated taxes. Gig workers often have income that is not subject to withholding, so they need to make estimated tax payments to avoid penalties. Show more…
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