TaskRabbit Taxes in Rhode Island - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for TaskRabbits in Rhode Island

From assembling furniture in Providence to helping with moving in Newport, TaskRabbit offers flexible earning opportunities throughout the Ocean 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 individual to report their income on Schedule C (Profit or Loss from Business) with Form 1040. Crucially, this income is also subject to self-employment tax, covering both Social Security and Medicare contributions, which are not automatically withheld from your TaskRabbit earnings.

How Rhode Island Handles Gig Worker Taxes

As a resident of Rhode Island, filing a state income tax return is mandatory, even if no Rhode Island income tax was withheld. Rhode Island operates on a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Rhode Island residents earning income as independent contractors will primarily use Form RI-1040NR to report their self-employment income. This form is used to calculate your Rhode Island taxable income and determine your state tax liability. It's important to note that Rhode Island also has a minimum tax calculation that may apply, even if your calculated tax liability is zero. Rhode Island also allows for deductions similar to the federal level, such as business expenses, which can help reduce your overall tax burden. Keep meticulous records of all income and expenses throughout the year. The Rhode Island Division of Taxation offers resources and guidance for self-employed individuals; you can find more information at the Rhode Island Division of Taxation website. Failure to file and pay state taxes on time can result in penalties and interest.

Top Tax Deductions for Rhode Island Drivers

• Standard Mileage: The #1 deduction for TaskRabbits. The 2025 rate is 70 cents per mile. Given Rhode Island's relatively compact size, the standard mileage rate is often the most advantageous method for calculating vehicle expenses.
• Tolls & Parking: Rhode Island has tolls on some bridges and highways, like the Newport Pell Bridge. Keep records of all toll receipts and parking fees incurred while performing TaskRabbit tasks; these are deductible business expenses.
• Phone & Data Plan: If you use your phone for scheduling tasks, communicating with clients, or navigating to job sites, you can deduct the percentage of your monthly bill attributable 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 delivering 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 quarterly using Form 1040-ES to avoid penalties.