Can you please advise regarding IRS taxes and Rover? EXAMPLE: Let's say I book a pet for boarding at my house and the bill for the client is $300. Rover takes 20%, I am paid $240. The IRS is going to want it's cut, approximately 30% (of the $240, which is $72). That leaves me with a total take home pay after taxes of $168. Does that sound correct? Thanks for your help. -Dave
You are considered an independent contractor and as such you would file Schedule C with your income taxes. On that form you report all your income and expenses (Rover fees don't count because you don't actually pay them). I have been an IC for years and set aside about 30% of each check. And pay estimated taxes during the year if you need to in order to avoid paying a penalty. I am not a tax professional, I'm just sharing my experiences.
To be on the safe side, consult a tax professional.
Hi Dave: You would do your own taxes after receiving the $240. Most sitters use the Schedule C tax form (for self employment). Seeing a tax professional is the way to go!
Thank you!
Some areas require you to pay a Sales and Use tax. I would def check into that. Mine is about 8%
I would reinforce Carl's comment to pay estimated taxes on the IRS quarterly schedule.