Rover offers a rewarding experience and a reliable source of income. Taxes as a Rover sitter, on the other hand, can be a bit frustrating, especially if you don’t know where to start.
Whether you are a Wag 1099 dog walker or a Rover Sitter, you will have to pay taxes on your income. With Line, America’s first Al-powered Smart Wallet App, you can file your taxes as Rover sitter for free and with utmost ease. We’re going to simplify the process of filing taxes as a Rover sitter/dog walker for you, no matter how complicated it may look.
Understanding Rover
In Rover, pet-sitting and dog-walking businesses can set their own hourly rates for walking pets. For purposes of taxation, Rover gig workers are considered self-employed. Dog walkers who earn money through Rover will have to pay a self-employment tax of 15.3%. While you earn money, you must pay income taxes to the federal government and your state government.
Depending on your tax bracket, you will have to pay income tax on the combined income from your full-time job and Rover side hustle.
Reporting Rover Sitter Income
As a Rover sitter/dog walker, you will be issued a 1099-NEC tax form if you received more than $600 from Rover payments during a calendar year (a 1099-MISC tax form will be issued before 2021). You will receive the 1099-NEC tax form at the address on your W-9. Additionally, you will receive an email with a copy of your 1099 tax form.
You should include all Rover transactions in Box 1 of your 1099-NEC for the last calendar year. If you need more time, you may request an extension of the 1099 form. For assistance filing taxes, you are advised to consult a tax advisor or professional.
In addition, you will receive PayPal 1099 if you got payments through PayPal or another third-party processor. Upon making $20k or more to your PayPal account and having 200 transactions in the past year, a 1099-K will be issued.
If you make less than $600 on Rover, you may not receive a 1099 form. If your company does not issue you a 1099 form, you still need to pay taxes on your income.
Estimated Quarterly Taxes
The United States has a four-time tax payment system instead of a single payment at the end of the year for independent contractors. The estimated tax payment you must make depends on the amount of taxes you owe. Divide your total tax liability for the previous year by four while taking self-employment tax, income tax and any other taxes into account.
It is important that you send your payments by the dates specified by the IRS. To avoid the 1099 late filing penalty, you need to submit all forms and file your taxes by April 15.
Remember The Deadline
Due dates for estimated quarterly taxes for Rover sitters and dog walkers working as independent contractors as per IRS in 2023 are:
- April 18
- June 15
- September 15
- January 15
If you fail to pay your duty on time, miss an estimated payment or miss an estimated payment, you will be penalized.
Tax Write-Offs As A Rover Sitter
The advantage of being a 1099 contractor is that you are considered a small business owner, which allows you to deduct different costs such as marketing, advertising, support and operational expenses. In order to file your self-employment income tax return, you need to complete a Schedule C, also known as Form 1040. A Schedule C includes both your profit and loss from self-employment. Keeping receipts will help you deduct every business expense correctly.
Self-employed individuals may be able to reduce their taxable income by taking the following tax deductions:
Direct expenses
- Rover fees
- Owner refunds from cancellations
- Cost of individuals you employ (i.e., payroll costs)
- Out-of-pocket unreimbursed business expenses such as dog walking shoes, pet harnesses or leashes and pet food purchases.
- The cost of managing your business, including legal or accountancy fees.
- Public transportation expenses such as bus, train or ride-share costs you pay to travel to customers.
Automobile Expenses
If using the Standard Mileage Rate method, business mileage and interest on a loan taken out to buy your vehicle can be deducted while filing taxes.
However, if you are using the Actual Expense method, expenses incurred in cleaning and maintenance services such as car washes and cleaning supplies are tax-deductible. Your Section C form will include a deductions section. Before claiming self-employment deductions, make sure you have all receipts stored or documented.
Taxes On Self-Employment (Social Security & Medicare)
Self-employment is a benefit of being a dog walker/Rover sitter. Being your own boss comes with a lot of benefits, but it also means you must file and handle your taxes properly. It is your responsibility to pay your own Social Security and Medicare taxes as an independent contractor. In many cases, you will be taxed on some of your earnings by your employer if you work full-time. In the case of a 1099 contractor, you are responsible for all the taxes.
It comes out to 15.3% for self-employment taxes in the 2023 tax season. There is a 12.4% rate for Social Security (old-age, survivors, and disability insurance) and a 2.9% rate for Medicare.
It’s still important to report even if you don’t get a 1099 for earnings less than $600. The income tax you owe on your earnings is self-employment tax. There is only one exception if your earnings are less than $400. The self-employment tax is not required in this case, but you will need to file an income tax return on your net earnings.
If your net earnings from self-employment were more than $400, you still have to file an income tax return as well as pay for Social Security and Medicare.
Conclusion
It may be difficult for you to process the tax information for your Rover 1099 if you are a dog walker. Taking advantage of some simple tips and tricks will help you avoid penalties for not filing your 1099 or paying your taxes on time. You can avoid penalties as well as save money in the long run.
