TaskRabbit Taxes in South Carolina - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for TaskRabbits in South Carolina

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

The IRS requires all TaskRabbit earnings to be reported as self-employment income, typically on Schedule C (Profit or Loss From Business) attached to your Form 1040. Because you aren't an employee, no taxes are automatically withheld from your payments. This means you're responsible for paying both income tax and self-employment tax (Social Security and Medicare) on your net earnings – that’s your income after deducting business expenses. If your net earnings exceed $400, you will owe self-employment tax.

How South Carolina Handles Gig Worker Taxes

As a resident of South Carolina, you are required to file a state income tax return, even if your only income is from TaskRabbit. South Carolina utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, South Carolina’s tax rates are expected to remain consistent with prior years, ranging from 0% to 6.5% depending on your taxable income bracket. It's crucial to accurately calculate your state tax liability based on your total income and allowable deductions.

The primary form for self-employed individuals to report income and calculate South Carolina income tax is Form SC1040. This form, along with any applicable schedules, must be filed with the South Carolina Department of Revenue. You may also need to make estimated tax payments throughout the year if you anticipate owing $100 or more in state income tax. Failing to do so could result in penalties. Keep meticulous records of all income and expenses to ensure accurate reporting. South Carolina also allows for certain deductions and credits that can reduce your tax liability, so exploring these options is highly recommended. Remember to consult the official South Carolina Department of Revenue website for the most up-to-date information and forms: South Carolina Department of Revenue.

Top Tax Deductions for South Carolina Drivers

• Standard Mileage: The #1 deduction for TaskRabbits. The 2025 rate is 70 cents per mile. Given South Carolina’s relatively moderate gas prices, the standard mileage rate is likely to be a beneficial option for most TaskRabbits.
• Tolls & Parking: While South Carolina doesn’t have extensive toll road networks, any tolls incurred while performing TaskRabbit tasks are deductible. Parking fees directly related to your work are also deductible.
• 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 phone and data plan that is used for business purposes.
• Vehicle-Related Costs: Consider deductions for items like car cleaning supplies (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 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, totaling 15.3% on your net earnings over $400. You'll calculate this on Schedule SE (Self-Employment Tax) and include it with your Form 1040.