TaskRabbit is a popular online platform that connects people with local taskers who can help them with a variety of tasks, from cleaning and errands to home repairs and furniture assembly.
If you're a Tasker, you're likely self-employed, which means you're responsible for paying your own taxes. However, there are several tax deductions available to self-employed individuals that can help you reduce your tax bill. Here are some of the top tax deductions available to TaskRabbit contractors, plus an offer for Taskers at the end to help maximize deductions!
Home office deduction
If you use a dedicated space in your home for your TaskRabbit work, you may be able to deduct a portion of your home expenses, such as rent or mortgage interest, utilities, and insurance. To qualify for this deduction, the space must be used exclusively for work purposes, and you must use it regularly and exclusively as your principal place of business.
If you use your vehicle for TaskRabbit tasks, you may be able to deduct the expenses related to its use, such as gas, maintenance, and insurance. You can calculate this deduction using either the standard mileage rate or the actual expenses method. Or you can use a simple mileage tracker to keep track of your mileage and expenses for more accurate vehicle-related cost reports.
Supplies and equipment
If you purchase supplies or equipment for your TaskRabbit work, such as cleaning supplies, tools, packing tape, or a new computer, you can deduct the cost of these items. Keep the receipts or log these expenses in an expense tracker like Everlance so you can tally them up at the end of the year.
If you attend workshops, conferences, or training sessions to improve your skills as a Tasker, you can deduct the cost of these activities.
Advertising and promotion
If you spend money on advertising or promoting your TaskRabbit services, such as flyers or business cards, you can deduct these expenses. This includes any platform fees you pay as well.
As a self-employed individual, you're responsible for paying both the employee and employer portions of Social Security and Medicare taxes. You can deduct the employer portion of these taxes on your tax return.
You can contribute to a tax-deferred retirement plan, such as a Simplified Employee Pension (SEP) or a Solo 401(k), and deduct your contributions from your taxable income.
It's essential to keep accurate records of your expenses and income throughout the year to take advantage of all the tax deductions available to you. So we've partnered with TaskRabbit to give Taskers their first three months of Everlance Premium, for free. Follow the link here.
Everlance Premium allows Taskers to automatically track their mileage and expenses, generate IRS-compliant reporting, and even find deductions they may have missed! By taking advantage of these tax deductions, you can reduce your tax bill and keep more of your hard-earned money in your pocket. (Oh and by the way, your Everlance subscription? Also tax-deductible)