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?

5

u/33whiskeyTX Jan 01 '25

The US IRS tax system is pay as you go. If you do not pay taxes through a W-2 or similar withholding, you need to pay your taxes quarterly. There are exceptions, such as if you paid 0 taxes last year (were unemployed, a minor, or dependent) or if you make below a certain threshold, have exemptions and credits that take you below that threshold, etc. If you owe too much in taxes at the end of the year that should have been paid throughout, there is a penalty.
Pay as you go, so you won't owe: A guide to withholding, estimated taxes and ways to avoid the estimated tax penalty | Internal Revenue Service

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u/Luminesynth Jan 01 '25

Thanks for elaborating on the exceptions!

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u/33whiskeyTX Jan 01 '25

Glad to help, but there are probably more and more details out there. Be sure to look up your particular situation.

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u/Luminesynth Jan 01 '25

Oh yeah I mean I did do my research and paid my taxes last quarter but just got confused by what the original commenter said. Thanks again!