<prompt> Human: I started as a contractor for a company last November. I got paid one time in December, and I listed it on my taxes as other income. I use turbotax and that was the only option I could find that made sense to me.I was taxed pretty heavily on that month, so for the last several months Ive been setting aside 25 of each check in a savings account specifically for taxes, so I have a big fund piling up. What can I do to minimize the tax impact here? Im not sure its worth the short term safety of having a lump sum in my savings in case something happens. Ive thought about opening up a Roth IRA, but Id have to weigh how much that would save in taxes vs. the security of having a liquid emergency fund. Im curious what thoughts are out there. This sub has been very helpful in the past. Im a newbie at all this.  <response>: As a 1099 contractor you have to pay estimated taxes quarterly on the 1040 ES the next quarter date is 915 I think, and also any state income taxes to your state. Assuming you havent paid anything yet, you will probably be assessed interestpenalty on the unpaid quarterly taxes when you file after the end of the year. 