The Easy Way To Do Taxes For Rover 1099 Sitters
While dog sitting is delightful, it can get a little tricky when tax season approaches, and you have to figure out the Rover 1099 taxes.
Unlike regular W2 employees, you’ll be in charge of calculating your self-employment taxes and paying Uncle Sam. For those, new to freelancing and gig economy, filing independent contractor taxes, raises a few questions like:
- Do you pay taxes on Rover?
- What does it mean to be self-employed?
- How do self-employment taxes work and how do I pay them?
- What can I write off?
In this guide, you’ll discover answers to all of the above questions and find out how to file your Rover 1099 taxes. We’ll go over, when you will receive 1099 from Rover, how PayPal works for 1099 contractors, quarterly taxes, tax deductions, etc. We’ve basically done all the work for you, and the only thing you need to do is keep reading.
At first, we'll explain how taxes for sitters work, and then we'll show you how to file your taxes.
Rover Taxes 101
For everyone working on Rover with furry little friends, taxes are not a problem, as long as you know all about your way around them.
The key to understanding taxes for Sitters is to see it as being an independent contractor, not an employee. The IRS sees you as a business owner and an employee at the same time. This means you, as an independent contractor, have to pay a self-employment tax of 15.3%. This accounts for both employer and employees' portion of social security and medicare taxes. On top of that, you'll still have to pay your state and income taxes, according to where you live and your tax bracket.
Your taxable income is shown on form 1099.
Rover 1099 Forms Explained
1099 tax form is issued to all Rover contractors, who received more than $600 in the last calendar year and documents their taxable income. This form is sent to the address listed on your form W-9 for Rover, and a copy is sent to the IRS by January 31.
- If you've made more than $600, you'll receive a form 1099-NEC, for Non-Employee Compensation. This form replaces the previously used form 1099-misc.
- If you've made more than $20,000 and had over 200 transactions in the last calendar year to your Paypal account, you will receive a form 1099-K
- If you received payments under $600 in the tax year, it does not mean that you don't have to file income taxes or a tax return. You are still responsible for filing your federal income taxes, you just will not be receiving a 1099 form from Rover.
- To find your Rover income, simply go to the dashboard in your Rover account. enter View Payments & Promo codes menu and enter Withdrawal History By Year.
You will also receive an electronic copy of your 1099 form at the email address provided in your Rover account.
If you have not received your expected 1099 form by January 31st or a few days after that, contact support at Rover.com. If you still didn't get your form by February 15, call the IRS center directly for help.
The next step is to calculate your taxes. The easiest way to do this is by using our free online income tax calculator. If you estimate that you owe over $1000 in taxes annually, you'll have to pay taxes every quarter.
The U.S. tax system operates on a pay-as-you-go system. This means that instead of paying all your taxes you owe at the end of the year at once, you’ll pay the taxes you’ll owe four times a year. Quarterly tax payments cover both income tax and self-employment tax.
To calculate how much you should send to the IRS every quarter, use Keeper Tax’s free estimated quarterly tax calculator tool.
The due dates for estimated tax payments:
- Q1 - April 15
- Q2 - June 15
- Q3 - September 15
- Q4 - January 15 next year
The easiest way to make a federal tax payment is to use IRS Direct Pay.
If you fail to make your quarterly tax payment or underpay your estimated taxes, you may receive a penalty at the end of the year.
What Expenses You Can You Write-Off?
One of the cool perks you get while working as a Rover independent contractor is tax deductions. Anything you use for your business, you can write-off. Even your cell-phone and internet bill can be partially deductible. Write-offs are a big advantage of being an independent contractor and can save you a lot of money. Keep clean records of your receipts for tax documentation, and you’ll be on your way to saving a lot of expenses.
Here's a list of Rover expenses that you may qualify for:
- Leash or harness
- Doodoo bags
- Rain gear for dogs
- Dog treats
- Toys, accessories
- Phone bills/internet bills
- Public transportation costs
- Private transportation costs - gas, parking, tolls, insurance, registration, and mileage.
Knowing this, you can file your taxes quite easily.
Filing Rover 1099 taxes
To file your taxes, you're going to need a few tax forms. All these forms can be found on the IRS' official website.
Write off your business expenses, using Schedule C made to calculate profit and losses on your 1099 income.
Once you've deducted all of your expenses, calculate your self-employment taxes on Schedule SE.
These tax forms need to be filed at the same time as your other tax returns, before April 15th.
To pay your estimated quarterly taxes, you will need to file Form 1040-ES.
If you are looking to streamline your tax deductions, use a handy app like Keeper Tax to do everything for you. The expense tracker will scan your bank and credit card statements to discover write-offs you can claim on your tax bill. Read the reviews for Keeper Tax and try it out for 14 days completely free.