If you're a gig worker, freelancer, or have a side hustle, managing your taxes can be tricky. Unlike traditional employees, gig workers don't have automatic tax withholding from their income. That means you may face an unexpected tax bill or even penalties if you don't plan ahead. To avoid surprises at tax time, it's crucial to regularly review your tax situation, ideally before the end of the year.

It's no secret that it can be frustrating to navigate the complexities of US tax codes and regulations. Of course, the last thing anyone wants is to find themselves facing tax penalties. While every situation is unique, there are some common pitfalls that can trigger penalties, so empowering yourself with a bit of information can help you stay compliant. Here’s a brief guide on how to avoid the costly consequences of tax penalties.