Overview

Gig work is treated as self‑employment for federal tax purposes, so you generally report earnings on Form 1040 and use business schedules to calculate taxable profit and self‑employment tax. Even if you don’t get an information return (like a 1099), the IRS expects you to report all income you receive (IRS: Self‑Employed Individuals Tax Center: https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center).

Key federal forms (what they are and when they apply)

  • Form 1040 — Individual Income Tax Return: Your starting point for annual tax filing. File by the standard annual deadline (typically mid‑April). (IRS: About Form 1040: https://www.irs.gov/forms-pubs/about-form-1040)

  • Schedule C (Form 1040) — Profit or Loss from Business: Use this to report business income and ordinary and necessary expenses from your gig work. Attach it to Form 1040. (IRS: About Schedule C: https://www.irs.gov/forms-pubs/about-schedule-c-form-1040)

  • Schedule SE (Form 1040) — Self‑Employment Tax: If your net earnings from self‑employment are $400 or more, you generally owe self‑employment tax (Social Security and Medicare), calculated on Schedule SE. The combined rate is about 15.3% (12.4% Social Security + 2.9% Medicare) with additional Medicare surtax potentially applying at higher incomes. (IRS: About Schedule SE: https://www.irs.gov/forms-pubs/about-schedule-se-form-1040)

  • Form 1099‑NEC — Nonemployee Compensation: Clients typically issue this when they pay you $600 or more in a year for services. It reports income to both you and the IRS, but you must report any income you earn even if you don’t receive a 1099. (IRS: About Form 1099‑NEC: https://www.irs.gov/forms-pubs/about-form-1099-nec)

  • Form 1099‑K — Payment Card and Third‑Party Network Transactions: Payment processors (e.g., credit card companies, gig platforms) may issue 1099‑K. Reporting rules and thresholds have changed and can be platform‑specific — check current IRS guidance and platform statements. See our guide comparing 1099‑K and 1099‑NEC for gig workers for details: Filing Options for Gig Workers: Choosing Between 1099‑NEC, 1099‑K and Schedule C.

  • Form 1040‑ES — Estimated Tax Payments: If you expect to owe tax of $1,000 or more after withholding and refundable credits, make quarterly estimated tax payments (typically due in April, June, September and January). Use Form 1040‑ES to calculate and pay. (IRS: Estimated tax forms and instructions; see also our walkthrough: How Estimated Tax Payments Work for Self‑Employed Taxpayers).

Other forms you may need

  • Form 8829 — Expenses for Business Use of Your Home (if you itemize the actual costs rather than using the simplified home office deduction).
  • Form SS‑4 — Apply for an EIN if you prefer to use an employer identification number instead of your SSN.
  • State income tax forms — Many states tax self‑employment income; check your state revenue department rules.

Practical filing tips and common pitfalls

  1. Report all income. The IRS compares information returns to your tax return; if you don’t report income, you can get a notice and penalties.
  2. Track expenses carefully. Deductible expenses lower both income tax and self‑employment tax when reported on Schedule C — common deductions include supplies, software, phone and internet (business portion), mileage or actual vehicle expenses, and continuing education.
  3. Separate business and personal finances. A dedicated business bank account and card simplify bookkeeping and support deductions if audited.
  4. Set aside money for taxes. A common rule is to reserve roughly 25–30% of net earnings for income and self‑employment taxes, but your situation may vary. Use quarterly payments (Form 1040‑ES) to avoid underpayment penalties.
  5. Watch for state and local requirements. Sales tax, business licenses, and state withholding rules can apply to some gig activities.
  6. Consider tax‑saving structures when appropriate. If net business income is substantial, consult a tax professional about S‑Corp election, retirement plan options (SEP‑IRA, Solo 401(k)), and health insurance deductions.

When to get professional help

If you have multiple platforms, complicated expense allocations, or income near thresholds for Social Security or additional Medicare taxes, getting a CPA or tax professional’s help can pay for itself. In my practice I often see clients avoid mistakes by formalizing bookkeeping and using estimated payment strategies early in the year.

Important notes and sources

This article summarizes common federal filing requirements for gig workers. For official instructions, see the IRS Self‑Employed Individuals Tax Center (https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center), About Form 1040 (https://www.irs.gov/forms-pubs/about-form-1040), About Schedule C (https://www.irs.gov/forms-pubs/about-schedule-c-form-1040), About Schedule SE (https://www.irs.gov/forms-pubs/about-schedule-se-form-1040), and About Form 1099‑NEC (https://www.irs.gov/forms-pubs/about-form-1099-nec).

This content is educational and not individualized tax advice. For recommendations tailored to your facts and current law, consult a qualified tax advisor or CPA.