Will Rover withhold income tax?
Will rover withhold income tax for sitters?
3 Answers
You report your income via Schedule C to Form 1040. Since there is no withholding, you will need to set aside sufficient funds for quarterly estimated payments. You should consult a tax professional on how to manage your tax situation,.
As an independent contractor, you should also be concerned about paying your tax quarterly so you don't get in a situation where the IRS charges you a penalty at the end of the year. Here is the IRS article: https://www.irs.gov/businesses/small-...
No. You are an independent contractor, so no income taxes are withheld. You report your income via a 1099 and the gov't will let you know how much you owe. You might also want to reach out to a CPA or Tax person to see what the requirements are for reporting that income, I think some places have a minimum that if not met, might not have to be reported but i am not a tax expert so definitely check into it.
Comments
You don't report using a 1099, that's used by employers. You report your Rover earnings and expenses on the Schedule C of your federal income tax return.