Do I have to report income? if so - How?
Tax season is coming up and I just want to make sure my ducks, I mean dogs, are in a row.
2 Answers
Let me add to Karen's response. If you are a novice in tax preparation may I suggest you find a CPA or a competent tax advisor to assist you. They can help you identify business expenses to offset your Rover business income.
Yes, you do have to report income from Rover, even though you WILL NOT receive any documentation in the form of a 1099 from either Rover or Paypal. It isn't required to be attached to any official IRS filings.
As an independent contractor, you would use Schedule C and you can offset those earnings with business expenses such as supplies, advertising, mileage, etc. The instruction booklet for Schedule C will explain what is a business expense. The fees Rover deducts from your earnings are NOT business expenses.
If you do a search on this board, you'll find many, many questions about taxes and examples of bona fide expenses. But you do have to keep records in order to claim them.
Comments
Does anyone deduct their rent on their taxes (if used for boarding)?
You may have to factor in the are of your apartment dedicated to boarding and/or the amount of time it was used for boarding. Someone else could probably provide better clarity but those are my thoughts. I don't board.
You may have to factor in the area of your apartment dedicated to boarding and/or the amount of time it was used for boarding. Someone else could probably provide better clarity but those are my thoughts. I don't board.