Question 1

What is a 1099 form?

Accepted Answer

A 1099 form is an IRS tax document that reports income you received from sources other than an employer. If you earned $600 or more from a single client or platform (e.g., Uber, DoorDash, Upwork) during the year, they are required to send you a 1099-NEC (Nonemployee Compensation). Unlike a W-2, no taxes are withheld — you are responsible for paying them yourself.

Question 2

Who needs to pay self-employment tax?

Accepted Answer

Anyone with net self-employment income of $400 or more must pay self-employment (SE) tax. This covers your Social Security (12.4%) and Medicare (2.9%) contributions — both the employee and employer shares — for a combined rate of 15.3%. You can deduct half of SE tax from your gross income on your federal return.

Question 3

How do I pay quarterly estimated taxes?

Accepted Answer

Because no employer withholds taxes for you, the IRS requires quarterly estimated payments if you expect to owe $1,000 or more. Due dates are typically April 15, June 16, September 15, and January 15. You can pay online at IRS Direct Pay (irs.gov/payments) or by mailing Form 1040-ES.

Question 4

What expenses can I deduct as a gig worker?

Accepted Answer

Common deductible business expenses include: mileage or vehicle costs (70 cents/mile in 2025), phone and internet (business-use portion), equipment and supplies, home office (if used regularly and exclusively for work), platform fees, and health insurance premiums. The 20% Qualified Business Income (QBI) deduction may also reduce your taxable income.