TaskRabbit Taxes in Arkansas - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for TaskRabbits in Arkansas

From assembling furniture in Little Rock to helping with moving in Fayetteville, TaskRabbit provides flexible income opportunities across the Natural State. However, that income comes with tax responsibilities. As an independent contractor utilizing the TaskRabbit platform, understanding these obligations is crucial for avoiding penalties and maximizing potential deductions.

The IRS requires all individuals earning $400 or more as self-employed workers to report their income on Schedule C (Profit or Loss from Business) with Form 1040. This income is also subject to self-employment tax, which covers both Social Security and Medicare taxes. Unlike traditional employment, TaskRabbit does not withhold these taxes from your earnings, meaning you are responsible for calculating and paying them throughout the year, often through estimated tax payments.

How Arkansas Handles Gig Worker Taxes

As a resident of Arkansas, filing a state income tax return is required, even if your federal tax liability is zero. Arkansas utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Arkansas residents who are self-employed will primarily use Form AR1040 and Schedule IN (Income) to report their TaskRabbit earnings. It's important to note that Arkansas does not offer a specific form tailored solely for gig workers; instead, self-employment income is integrated into the standard individual income tax return. Arkansas also allows for a deduction for federal income taxes paid, which can help reduce your state tax liability. Furthermore, Arkansas conforms to many federal deductions, meaning deductions taken on your federal Schedule C may also be applicable on your Arkansas return. Keep meticulous records of all income and expenses to ensure accurate reporting. The Arkansas Department of Finance and Administration provides detailed information and resources for taxpayers, including downloadable forms and instructions. You can find more information at Arkansas Department of Finance and Administration.

Top Tax Deductions for Arkansas Drivers

• Standard Mileage: The #1 deduction for TaskRabbits. The 2025 rate is 70 cents per mile. Given Arkansas’ relatively moderate gas prices, the standard mileage rate is often the most advantageous method for calculating vehicle expenses.
• Tolls & Parking: While Arkansas doesn’t have extensive toll road systems, any tolls incurred while performing TaskRabbit tasks are deductible. Parking fees directly related to your work are also deductible.
• Phone & Data Plan: If you use your phone for TaskRabbit-related communication, scheduling, or navigation, you can deduct the percentage of your monthly bill attributable to business use.
• Vehicle-Related Costs: Consider deducting expenses like car cleaning supplies (to maintain a professional appearance), phone mounts for safe navigation, or insulated bags for delivering groceries or food items.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas, oil changes, or repairs in the same year. Choose the method that yields the larger deduction.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment tax is comprised of two parts: 12.4% for Social Security and 2.9% for Medicare. Because TaskRabbit doesn’t withhold these taxes, it’s your responsibility to calculate and pay them, typically through quarterly estimated tax payments to the IRS. This ensures you avoid underpayment penalties at the end of the tax year.