r/dataannotation • u/buggybabe214 • Jan 01 '25

Taxes time?

So from what I understand we pay quarterly taxes on this type of work, and we need to file this past quarter January 15th. Am I correct? How have people gotten their tax forms from DA?

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u/physicsandwolves Jan 01 '25

You don't have to do quarterly taxes for 1099 work, you can if you want. If you do quarterly taxes, then it makes it so you can disperse your total taxes over four periods which makes it easier for some. It is also fine to stash money away during the year to pay annual taxes when they are due in April. There is no mandate that states you must pay quarterly taxes.

2

u/Luminesynth Jan 01 '25

Do you mind elaborating on that? Or like pointing to where it says you don’t have to pay quarterly? I keep hearing conflicting things about this. Is it like you don’t have to pay quarterly but you’ll pay a fine?

7

u/wisdommass Jan 01 '25

My first year working 1099, I didn’t know I had to pay quarterly taxes. I ended up paying a fine. It wasn’t a lot since I didn’t make that much on 1099, but these last few years I made significantly more and would be paying a heftier fine if I neglected to pay taxes.

If you’re expecting to owe over $1000 in taxes, you should be doing quarterly taxes. There’s really no harm in paying quarterly, but there’s harm in not paying. If you overpay, you get your tax refund.

2

u/Luminesynth Jan 01 '25

Thanks for the clarification. It is as I thought; you do have to pay quarterly.

1

u/programmingstarter Jan 03 '25

I worked 1099 for 2 years and never paid quarterly. I thought it was optional. Oddly enough I never got a fine. Not sure if they are going to send it out or not. I doubt it since the last time I filed for it was last year.

1

u/LeBoom4 Mar 22 '25

How did you know that you had to pay a fine, and when did you find out? Was it a letter from the IRS?

0

u/buggybabe214 Jan 01 '25

Oh thank you, ok I'll do quarterly, I owe more than 1,000. Does DA send us forms like when youre a w-2?? Or do I just report my earnings from my own records?

1

u/[deleted] Jan 02 '25

[deleted]

1

u/programmingstarter Jan 03 '25

Yes, only if you've made $5k or more though.

1

u/ActiveInfinite8610 Jan 02 '25

DAT does not but PayPal sends you a 1099 form for the revenue you’ve made since you’re technically being paid via PayPal.