Updated for 2026 (Filing 2025 Taxes)
Sharing your vehicle on Turo provides a flexible income stream, but as a Kansas resident, understanding the tax implications is crucial for a smooth tax season. Revenue generated through Turo is considered taxable income by both the federal government and the State of Kansas.
The IRS requires Turo hosts to report their earnings on Schedule C (Profit or Loss From Business) as self-employment income. This means not only income tax, but also self-employment tax (Social Security and Medicare) applies to net earnings over $400. Accurate record-keeping of income and expenses is paramount.
As a resident of Kansas, you are required to file a state income tax return, even if your only income is from Turo. Kansas utilizes a graduated income tax system, meaning the tax rate increases as your income increases. This means the amount of tax you owe will depend on your total taxable income for the year, not just your Turo earnings. The primary form for self-employed individuals to report income and calculate Kansas income tax is Form K-40. You will report your Schedule C net profit on this form. Kansas also allows for itemized deductions, which can potentially reduce your state tax liability. It's important to note that Kansas tax laws can change, so staying updated is vital. Furthermore, Kansas requires estimated tax payments if you expect to owe more than $1,000 in state income tax. Failing to make these payments can result in penalties. The Kansas Department of Revenue offers resources and tools to help you understand your obligations and file accurately. Remember to keep detailed records of all income and expenses related to your Turo hosting activity to support your tax filings.
You can find more information and resources on the Kansas Department of Revenue website: https://www.ksrevenue.gov/
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 greater deduction.
This tax covers both Social Security and Medicare taxes. Unlike traditional employment where these taxes are withheld from your paycheck, as a Turo host, you are responsible for paying both the employer and employee portions. Turo and other gig platforms do not withhold these taxes, so planning for this expense is essential. You will calculate this tax on Schedule SE (Self-Employment Tax) and it will be part of your overall federal tax liability.
Estimate your taxes using current IRS rules.
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*Disclaimer: This is a simplified estimate. Includes SE Tax, State Tax, and QBI Deduction impact. Consult a CPA.
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