People who perform services for companies such as Uber, Task Rabbit, Airbnb, DogVacay, and similar companies are generally considered independent contractors. If you are considered an independent contractor, you will report your income and expenses on Schedule C (Form 1040) Profit or Loss From Business.

Per the IRS Gig Economy Tax Center webpage:

What is the Gig Economy?

The gig economy—also called sharing economy or access economy—is activity where people earn income providing on-demand work, services or goods. Often, it’s through a digital platform like an app or website.

Gig Economy Income is Taxable

You must report income earned from the gig economy on a tax return, even if the income is:

• From part-time, temporary or side work
• Not reported on an information return form—like a Form 1099-K, 1099-MISC, W-2 or other income statement
• Paid in any form, including cash, property, goods, or virtual currency

What is Gig Work?

Gig work is certain activity you do to earn income, often through an app or website (digital platform), like:

• Drive a car for booked rides or deliveries
• Rent out property or part of it
• Run errands or complete tasks
• Sell goods online
• Rent equipment
• Provide creative or professional services
• Provide other temporary, on-demand or freelance work

Note: This list does not include all types of gig work.

What are Digital Platforms?

Digital platforms are businesses that match workers' services or goods with customers via apps or websites. This includes businesses that provide access to:

• Ridesharing services
• Delivery services
• Crafts and handmade item marketplaces
• On-demand labor and repair services
• Property and space rentals

Note: This list does not include all types of digital platforms.

To enter or review information for your business on federal Schedule C in the TaxAct program, go to our Schedule C - Entering Sole Proprietorship in Program FAQ.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.