TaskRabbit Taxes in Utah - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for TaskRabbits in Utah

From assembling furniture in Salt Lake City to running errands along the Wasatch Front, TaskRabbit offers flexible income opportunities throughout Utah. However, that flexibility comes with tax responsibilities. As an independent contractor, earnings from TaskRabbit are considered self-employment income, requiring diligent record-keeping and accurate tax filing.

The IRS requires all self-employed individuals, including TaskRabbits, to report income and expenses on Schedule C (Profit or Loss from Business) with Form 1040. Furthermore, earnings exceeding $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions. Platforms such as TaskRabbit do not withhold these taxes, making proactive tax planning crucial.

How Utah Handles Gig Worker Taxes

As a resident of Utah, filing a state income tax return is required, even if no federal tax is owed. Utah operates under a flat income tax rate, currently at 4.85% for the 2025 tax year. This means all taxable income is subject to the same rate, simplifying the state tax calculation. Self-employed individuals in Utah will primarily use Form TC-1040, the Utah Individual Income Tax Return, to report their income and deductions. Schedule A (Utah Adjustments to Federal Adjusted Gross Income) is used to report any Utah-specific adjustments, and Schedule C (Utah Source Income) is used to report business income. It's important to note that Utah conforms to many federal tax provisions, meaning deductions allowed on the federal Schedule C are generally also allowed on the Utah return. However, always verify current Utah tax law as changes can occur. Utah also offers a nonrefundable credit for taxes paid to other states, which may be relevant if performing tasks across state lines. Accurate record-keeping of all income and expenses is vital to ensure proper calculation of Utah state income tax liability. The Utah State Tax Commission provides comprehensive resources and guidance for self-employed individuals.

You can find more information and resources on the Utah State Tax Commission website: https://tax.utah.gov/

Top Tax Deductions for Utah Drivers

• Standard Mileage: The most popular deduction for TaskRabbits. The 2025 rate is 70 cents per mile. Given Utah's diverse geography, from urban areas to mountainous regions, the mileage adds up quickly, making this a significant potential deduction.
• Tolls & Parking: While Utah doesn't have extensive toll roads, parking fees incurred while performing TaskRabbit tasks are deductible. Keep receipts for parking at client locations or while picking up supplies.
• Phone & Data Plan: If your phone and data plan are used for business purposes (e.g., navigating to tasks, communicating with clients), you can deduct the percentage of the bill attributable to business use.
• Vehicle-Related Costs: Expenses like car cleaning supplies, phone mounts for navigation, or insulated bags for food delivery tasks are deductible.

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 where these taxes are withheld from your paycheck, as a TaskRabbit, you are responsible for paying both the employer and employee portions. This is why it's often referred to as "self-employment tax." Remember to factor this into your overall tax planning and consider making estimated tax payments throughout the year to avoid penalties.