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Schedule C or 1099?

Hello there, I am beginning my time on Rover as a sitter, and I want to be sure I am prepared for the tax deadlines this coming year.

I know this is not a financial firm so no official advising can take place, but I am curious- to veteran Rover users out there, which form do you recommend I seek help with- a Schedule C, or a 1099? Or both? Which do you prefer to use? I am interested in the Schedule C so I could deduct mileage in particular, but I see Paypal may offer a 1099, and Paypal is how I redeem my income.

Could I ask about the Schedule C alone, or should I ask about the 1099? Or is both a safe compromise?

Thank you!

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I am not a tax professional and what I'm sharing is just my experience as a long-time independent contractor. We are considered independent contractors in the eyes of the IRS for our pet sitting business. Schedule C and 1099 are two completely different forms. Schedule C is the tax form you file with your income taxes that reports your income and expenses for your business. 1099 is what a business may issue an independent contractor when they pay them over $600. It simply reports to the IRS how much they paid the contractor.

There is an IRS publication that details how to fill out the Schedule C, and I strongly suggest you get it as soon as possible. There are many expenses you can claim for your business - mileage to and from clients, pet food and supplies, classes, just to name a few.

Rover will not issue a 1099, and Paypal only issues them at a $20,000 threshold (I think). Your best bet is to keep track of your Rover (and DV) earnings yourself. You don't need any forms to back up the income like the W-2 if you're an employee.

Also, if you plan on making a lot of money with pet sitting, it's a good idea to start paying estimated taxes quarterly. At least set aside about 20-30% of your income for use when filing your 1040 in April. You will be charged self-employment tax when you file your 1040, and that often comes as an unexpected and unpleasant surprise.

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Cari, Thank you for the clarification and suggestions. I will absolutely keep them in mind as I do more research/consultation and move forward. Thank you :)