Workers who venture into the world of side hustles or gig jobs might get an unwelcome surprise when they file their tax returns: an unexpected tax penalty.
Independent workers — those who don't have taxes withheld by an employer — should be paying estimated taxes. Yet a recent survey showed the majority (59 percent) of these solo workers do not make these four-times-a-year payments. They said they do not need to (42 percent) or don't know what estimated taxes are (17 percent).
"If you're new to independent work or freelancing, there's no one [explaining] how to pay your taxes," said Alex Marlantes, co-founder and CEO of mileage-and-receipt tracker app Everlance, which conducted the survey late last year of 1,528 self-identified independent workers.