TaskRabbit Taxes in Colorado - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for TaskRabbits in Colorado

From assembling furniture in Denver to helping with moving in Boulder, TaskRabbit provides flexible income opportunities across the Centennial State. However, that flexibility comes with tax responsibilities. As an independent contractor through TaskRabbit, earnings are considered self-employment income, requiring diligent record-keeping and accurate tax filing.

The IRS requires all self-employed individuals, including TaskRabbits, to report income and expenses on Schedule C (Profit or Loss from Business) with Form 1040. Furthermore, earnings exceeding $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions, which are not automatically withheld from TaskRabbit payments.

How Colorado Handles Gig Worker Taxes

As a resident of Colorado, filing a state income tax return is mandatory, even if no federal tax is owed. Colorado operates under a flat income tax rate, currently at 4.40% for the 2025 tax year. This means all taxable income is subject to the same rate, simplifying the state tax calculation. Self-employed individuals in Colorado will primarily use Form DR 0400, Colorado Individual Income Tax Return, to report their income and calculate their state tax liability. Crucially, the net profit calculated on your federal Schedule C flows directly to your Colorado return. Colorado also requires Schedule SE (Self-Employment Tax) information to be reported on Form DR 0400. Remember to account for any estimated tax payments made throughout the year to avoid penalties. Colorado’s Department of Revenue offers resources and guidance specifically for self-employed individuals; further information can be found at Colorado Department of Revenue. It's important to note that Colorado does not have local income taxes, simplifying the state tax landscape for TaskRabbits operating anywhere within the state. Keep detailed records of all income and expenses to accurately determine your Colorado tax liability.

Top Tax Deductions for Colorado Drivers

• Standard Mileage: The #1 deduction for most TaskRabbits. The 2025 rate is 70 cents per mile. Given Colorado’s diverse terrain and potential for driving between jobs in cities like Fort Collins and Colorado Springs, this can add up significantly.
• Tolls & Parking: While Colorado doesn’t have extensive toll roads, expenses incurred for parking while performing tasks are deductible. Keep receipts for parking in areas like downtown Denver or near the University of Colorado Boulder.
• Phone & Data Plan: The percentage of your phone and data plan used for business purposes (e.g., TaskRabbit app, communication with clients) is deductible.
• Vehicle-Related Costs: Consider deductions for supplies like car cleaning products 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 or repairs in the same year. Choose the method that yields the larger deduction.

Understanding the 15.3% Self-Employment Tax

This tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional employment, TaskRabbit and other gig platforms do not withhold these taxes from your earnings. Therefore, it’s your responsibility to calculate and pay this tax, typically through estimated tax payments made quarterly to the IRS.