Gig work taxes

Forum|Forum|1 year ago
March 25, 2025
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Hi,

I work a regular full time job with a W2 and also do gig work driving for Uber, Doordash, etc. I understand I have to pay estimated taxes quarterly to the IRS, but do these payments include state taxes or do I need to pay state taxes separately? Also, my wife has a full time W2 job and we file jointly, but only I do gig work. Do I file estimated taxes as married filing separately or do I need to file as I do for regular annual taxes?

Thanks.

Best answer by Vanessa A

You need to pay state taxes separately. The IRS and the state do not share the money. They are separate entities, so if you do not pay separately, the one that does not get the money will penalize you.

You only need to pay the quarterly taxes on the amount you earn for your gig work. However, to determine your tax rate, you will need to consider her income and your other income as well.

Depending on how you want to do it and how much you make with your gig work, you can also change your W-4 to increase the amount you have withheld to cover the extra income. This would allow you to not have to pay the quarterly payments as long as you do make sure you are having enough extra withheld.

What is the self-employment tax?

Vanessa AAnswer

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Outs01Author

Thanks for the info Vanessa. I should have mentioned that my wife and I work in NY, but we reside in NJ. I also only do gig work in NJ. In this case, do I still need to consider all of our collective income for both states when calculating for federal and for state?

Vanessa A

For federal yes, you still need to consider ALL of your collective income.

For NY, you would only consider the income you earn in NY since you are a non-resident. You would not need to consider the income you earn only in NJ on your NY return.

For NJ, you will need to consider all of your income the same as you do your federal. However, for NJ, you would then also consider the tax credit that you would get on your return for taxes paid to NY on your W-2 income. You will not have a credit for your gig work on your NJ return, so you will need to be sure to pay taxes on that to NJ.

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