Fitness instructor

Forum|Forum|1 year ago
August 28, 2024
1 reply
0 views

Hi! I have a side did as a cycling instructor. I have been doing this for the past 2 yrs. Last year I had a lot of expenses, and I am not remembering if taxes were taken out at the end of the year or not. But my question is, can I wait until the end of the year this year to see if my expenses outweigh what I may have paid in taxes? Or should I just make quarterly payments? Will I get penalized if I wait until the end of the year? The owner of the gym send me a 1099 in January and I do report those on taxes. Thank you.

K M W

Individuals, including people with a side gig, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.

If you are not earning much on the side gig (after subtracting your expenses from your income) and you won't owe over $1,000 when you do your tax return, then you do not have to pay quarterly taxes.

However, waiting until the end of the year to figure out your tax liability could subject you to interest and penalties. You will want to review your cycling instructor income and expenses on a regular basis to determine if you need to make estimated tax payments during the year.

TurboTax has a Self-Employment Tax Hub with tons of resources, including Self-Employment Tax Calculators. You can find our Self-Employed Tax Hub at this link: TurboTax Self Employed Tax Hub

If you do need to make estimated tax payments, you may send estimated tax payments with Form 1040-ES by mail, or you can pay online, by phone or from your mobile device using the IRS2Go app. You can also make your estimated tax payments through an online account with the IRS, where you can see your payment history and other tax records.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"