TaskRabbit Taxes in Vermont - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for TaskRabbits in Vermont

From assembling furniture in Burlington to helping with moving in Montpelier, TaskRabbit provides flexible income opportunities throughout the Green Mountain 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 Form 1040. Earnings over $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions. Accurate record-keeping throughout the year is crucial for maximizing deductions and ensuring compliance.

How Vermont Handles Gig Worker Taxes

As a resident of Vermont, filing a state income tax return is required, even if no Vermont income tax is due. Vermont operates on a graduated income tax system, meaning the tax rate increases as your income rises. This means your tax bracket, and therefore your tax rate, will depend on your total taxable income for the year. The primary form for self-employed individuals to report income and calculate Vermont income tax is Form INC-100, Individual Income Tax Return. Vermont also requires Schedule IN-100, which is used to calculate adjustments to federal adjusted gross income.

Vermont’s Department of Taxes closely monitors self-employment income. It’s important to accurately report all TaskRabbit earnings, as underreporting can lead to penalties and interest. Vermont also offers various credits and deductions that may be applicable to self-employed individuals, such as those related to business expenses. Furthermore, Vermont requires estimated tax payments if your tax liability is expected to be $500 or more. These payments are typically made quarterly to avoid underpayment penalties. The Vermont Department of Taxes website provides detailed information on estimated tax requirements and payment options.

You can find more information and resources on the Vermont Department of Taxes website: https://tax.vermont.gov/

Top Tax Deductions for Vermont Drivers

• Standard Mileage: The #1 deduction for most TaskRabbits. The 2025 rate is 70 cents per mile. Given Vermont’s rural areas and potential for longer travel distances between tasks, this rate can significantly reduce your tax liability.
• Tolls & Parking: While Vermont doesn’t have extensive toll roads, any tolls incurred while performing TaskRabbit work are deductible. Parking fees directly related to tasks are also deductible.
• Phone & Data Plan: If you use your phone for scheduling tasks, communicating with clients, or navigating, you can deduct the percentage of your monthly bill attributable to business use.
• Vehicle-Related Costs: Consider deducting expenses like car cleaning supplies (especially important during mud season!), 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 these taxes are withheld from your paycheck, as a TaskRabbit, you are responsible for paying both the employer and employee portions. Platforms like TaskRabbit do not withhold these taxes, so planning for this expense is essential. You’ll calculate this tax on Schedule SE (Self-Employment Tax) and include it with your Form 1040.