TaskRabbit Taxes in Wisconsin - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for TaskRabbits in Wisconsin

From assembling furniture in Madison to helping with moving in Milwaukee, TaskRabbit provides flexible income opportunities throughout the Badger State. However, that income comes with tax responsibilities. As an independent contractor utilizing the TaskRabbit platform, earnings are considered self-employment income, requiring diligent record-keeping and accurate tax filing.

The IRS requires all self-employed individuals earning over $400 in net profit to report their income on Schedule C (Profit or Loss from Business) with Form 1040. Furthermore, this income is subject to self-employment tax, covering both Social Security and Medicare taxes, which are not automatically withheld from your TaskRabbit payments. Proactive tax planning is crucial to avoid surprises during tax season.

How Wisconsin Handles Gig Worker Taxes

As a resident of Wisconsin, filing a state income tax return is required, even if your only income is from TaskRabbit. Wisconsin operates on a graduated income tax system, meaning the tax rate increases as your income increases. For the 2025 tax year, self-employed individuals will primarily use Form 1040-ES and Schedule 1 to report their income and calculate their Wisconsin income tax liability. Wisconsin also requires you to report your federal Schedule C income on Form 400, the Wisconsin Income Tax Return.

Wisconsin offers several deductions and credits that can reduce your tax burden. The state allows a deduction for federal income tax paid, which can significantly lower your taxable income. Additionally, Wisconsin has a specific deduction for qualified business income (QBI), potentially reducing your tax liability further. It's important to note that Wisconsin's tax laws can be complex, and staying updated on changes is vital. The Wisconsin Department of Revenue provides comprehensive information and resources for self-employed individuals. You can find more details and forms at the Wisconsin Department of Revenue website.

Remember to keep detailed records of all income and expenses related to your TaskRabbit work, as these will be essential when preparing your state and federal tax returns. Consider consulting with a tax professional familiar with Wisconsin tax laws for personalized advice.

Top Tax Deductions for Wisconsin Drivers

• Standard Mileage: The #1 deduction for most TaskRabbits. The 2025 rate is 70 cents per mile. Given Wisconsin's variable weather and potential for longer distances between tasks, especially in rural areas, this rate can add up quickly.
• Tolls & Parking: While Wisconsin doesn't have extensive toll roads, parking fees incurred while performing tasks are deductible. Keep receipts for parking in cities like Milwaukee or Madison.
• Phone & Data Plan: The percentage of your phone and data plan used for business purposes (e.g., TaskRabbit app, communication with clients) is deductible.
• 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, TaskRabbit and other gig platforms do not withhold these taxes from your earnings. Therefore, it’s your responsibility to calculate and pay this tax, typically through estimated tax payments made quarterly to the IRS.