TaskRabbit Taxes in Montana - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for TaskRabbits in Montana

From assembling furniture in Bozeman to helping with moving in Missoula, TaskRabbit provides flexible income opportunities across the Treasure State. However, independent contractors like TaskRabbits are responsible for managing their own taxes, which can seem daunting.

The IRS requires all individuals earning $400 or more as a self-employed worker to file a Schedule C (Profit or Loss from Business) with their Form 1040. This reports your income and expenses. Crucially, as a TaskRabbit, you’ll also be subject to self-employment tax, covering both Social Security and Medicare contributions, as these are not automatically withheld from your earnings.

How Montana Handles Gig Worker Taxes

As a resident of Montana, you are required to file a state income tax return, even if your federal tax liability is zero. Montana operates on a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Montana’s income tax rates are expected to remain consistent with prior years, ranging from 1% to 6.75% based on taxable income brackets. The primary form for self-employed individuals to report income and calculate tax liability is Form 2, Montana Individual Income Tax Return. You will likely also need Schedule 1, Adjustments to Income, to report any relevant deductions. Montana also allows for itemized deductions similar to the federal level, which can further reduce your tax burden. It’s important to note that Montana’s tax laws can change, so staying updated is crucial. The Montana Department of Revenue offers comprehensive resources and information for taxpayers, including online filing options and detailed guides. Remember to keep accurate records of all income and expenses throughout the year to ensure accurate filing and avoid potential penalties. Montana also offers credits for certain expenses, so exploring those options is recommended.

You can find more information and resources at the Montana Department of Revenue.

Top Tax Deductions for Montana Drivers

• Standard Mileage: The #1 deduction for most TaskRabbits. The 2025 rate is 70 cents per mile. Given Montana’s vast distances and the need to travel between jobs, especially in more rural areas, this deduction can significantly reduce your tax liability.
• Tolls & Parking: While Montana doesn’t have extensive toll roads, any parking fees incurred while performing TaskRabbit tasks are deductible. Keep receipts!
• Phone & Data Plan: If you use your phone for scheduling tasks, communicating with clients, or navigating, you can deduct the percentage of your phone and data plan that is used for business purposes.
• Vehicle-Related Costs: Expenses like car cleaning supplies (to maintain a professional appearance), phone mounts, or insulated bags for deliveries are all deductible business expenses.

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 covers both Social Security and Medicare taxes. Unlike traditional employment where your employer withholds these taxes, as a TaskRabbit, you are responsible for paying both the employer and employee portions. This combined rate of 15.3% is applied to your net earnings (income minus business expenses) exceeding $400. Remember to factor this into your overall tax planning.