TaskRabbit Taxes in Indiana - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for TaskRabbits in Indiana

From assembling furniture in Bloomington to helping with moving in Indianapolis, TaskRabbit provides flexible income opportunities across the Hoosier 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, typically through estimated tax payments throughout the year.

How Indiana Handles Gig Worker Taxes

As a resident of Indiana, filing a state income tax return is required, even if no Indiana income tax was withheld. Indiana operates under a flat income tax rate, currently at 3.15% for the 2025 tax year. This means all taxable income is taxed at the same rate. TaskRabbit income is considered taxable income and must be reported on Form IT-1040, Indiana Resident Income Tax Return. Self-employed individuals will also likely need to file Schedule IT-1040, Schedule IN-K1 (for pass-through entities, if applicable), and potentially Schedule IT-196 (for adjustments to income). Indiana does not offer a specific form tailored solely for gig workers, so utilizing the standard individual income tax forms is necessary. It’s important to accurately track all income received through TaskRabbit and any related business expenses to determine your net profit, which is then subject to the state’s flat tax. Indiana also allows for itemized deductions, which could further reduce your taxable income. Keep thorough records of all income and expenses throughout the year to simplify the filing process. For detailed information and the latest updates on Indiana tax laws, please visit the Indiana Department of Revenue website: https://www.in.gov/dor/

Top Tax Deductions for Indiana Drivers

• Standard Mileage: The #1 deduction for TaskRabbits. The 2025 rate is 70 cents per mile. Given Indiana’s relatively stable gas prices, the standard mileage rate is often a beneficial and simplified method for calculating vehicle expenses.
• Tolls & Parking: Indiana has toll roads, particularly in the northern part of the state. Keep receipts for all tolls and parking fees incurred while performing TaskRabbit tasks; these are deductible in addition to the standard mileage rate.
• Phone & Data Plan: If you use your phone for TaskRabbit-related communication, scheduling, or navigation, you can deduct the percentage of your monthly bill that corresponds to business use.
• Vehicle-Related Costs: Consider expenses like car cleaning supplies (to maintain a professional appearance), phone mounts for safe navigation, or insulated bags for food delivery tasks.

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 greater deduction.

Understanding the 15.3% Self-Employment Tax

This tax comprises two components: 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 along with your income tax. You can reduce your self-employment tax liability by deducting one-half of your self-employment tax from your gross income.