If you underpay by more than 10%, you could end up having to pay the IRS late fees and penalties. If you overpay on your quarterly tax payments, you'll get that extra money back as a tax refund. That’s said, it’s a good idea to be generous with the IRS in your estimates. While you want to get the amount you send as close to right as possible, the IRS does give quarterly filers a 10% buffer in case they're slightly off. Note that the quarterly payments are estimates. Any self-employed person who expects to owe the IRS at least $1,000 needs to file and pay their taxes in four installments. When to file TaskRabbit 1099 taxesįor people new to gig work, it can come as a surprise to discover that Tax Day isn’t just once a year in April. Now that you know the types of TaskRabbit taxes you’re expected to pay, let’s cover the forms you’ll need to file on Tax Day. To find out exactly how much your income tax bill is, give our income tax calculator a whirl. Your rate will depend on factors such as where you live, your marital status, and your income tax bracket. Luckily, you can write off the employer portion of your FICA taxes on your income taxes - which, sadly, you also have to pay. This brings your total self-employment tax rate up to 15.3%. And that means you’re seen by the IRS as an employer and an employee - making you responsible for both portions of your FICA tax. That adds up to 7.65%, which their employers match.Īs a sole proprietor, though, you are your own boss. W-2 employees also pay these taxes: 6.2% of their income goes to Social Security, while 1.45% goes to Medicare. Self-employment taxesĪlso known as FICA (Federal Income Insurance Contributions Act), self-employment taxes are how freelancers pay Social Security and Medicare taxes. What does this mean for your taxes? Let’s break down exactly what the IRS expects from you. That's why, at the beginning of the year, you'll receive a 1099 form that documents your income. While you might secure gigs through TaskRabbit, the IRS considers you to be a self-employed person running their own business - also known as a “sole proprietor.”Īs an independent contractor, your taxes aren’t withheld - you’re responsible for filing them yourself. Instead, you’re considered a contractor or gig worker. When you work for TaskRabbit, you're not classified as a regular W-2 employee.