US Tax Notes
Important tax information for US-based task earners.
Disclaimer
This information is for general guidance only and should not be considered professional tax advice. Tax laws are complex and individual situations vary. Always consult with a qualified tax professional or CPA for advice specific to your situation.
Reporting Requirements
Under $600/year
Reporting:Optional
Documentation:We don't send 1099
Still technically taxable income, but no required reporting from us
$600 - $20,000/year
Reporting:Required
Documentation:1099-NEC form
We'll send you and the IRS a 1099-NEC by January 31st
Over $20,000/year
Reporting:Required
Documentation:1099-NEC + detailed records
Additional documentation may be required for high earners
Potential Deductions
Equipment
- Phone/computer depreciation
- Internet costs (partial)
- Software subscriptions
Only the portion used for tasks
Expenses
- App purchases for testing
- Transaction fees (if any)
- Home office space (partial)
Must be directly related to task completion
Record Keeping
- • Keep records of all task earnings
- • Save screenshots of completed tasks
- • Track any business expenses
- • Maintain payment confirmations
- • Note dates and amounts for each task
Tax Classification
- • Earnings are considered self-employment income
- • Report on Schedule C (Form 1040)
- • May be subject to self-employment tax
- • Quarterly payments may be required for high earners
- • Consult a tax professional for guidance