MONEY AND TAXES · 4 MIN
Gig and freelance income: self-employment tax
In short
Driving, delivery or freelancing makes you self-employed. Who is allowed, the 15.3% tax, quarterly payments and records.
Driving for Uber, delivering for DoorDash, selling crafts, tutoring or freelancing online usually makes you self-employed. No one withholds tax for you.
First: are you allowed?
Many visas do not allow this kind of work. Most F-1, J-1, H-1B, L-1 and dependent visa holders without their own work permit cannot do gig work, and unauthorized work can damage your status. Check your status before you sign up. Green card holders, refugees, asylees and people with a valid work permit (EAD) generally can.
The tax you pay
1
Income tax on your profit, like any income.
2
Self-employment tax: 15.3% of most of your net profit. This is Social Security and Medicare. An employee pays half and the employer pays half; when you work for yourself, you pay both halves. You can deduct half of it.
You owe self-employment tax if your net profit is $400 or more in a year.
Nonresident aliens for tax generally do not owe self-employment tax, but they still owe income tax on US business income.
Profit, not total
You pay tax on profit: money in minus business costs. Common costs:
Car use for the work (mileage or actual costs)
Phone and internet, for the business share
Supplies, equipment, platform fees
Keep receipts and a mileage log. Many apps track miles for you.
Forms
1099-NEC: from a business that paid you $2,000 or more in 2026 (it was $600 before 2026).
1099-K: from payment apps and platforms, if you had more than $20,000 and more than 200 payments for goods or services.
You must report all income, even if you get no form.
On your return: Schedule C (profit) and Schedule SE (self-employment tax).
Quarterly estimated tax
Because no one withholds tax, you pay during the year. The usual due dates are April 15, June 15, September 15 and January 15. Pay online at irs.gov/payments.
A simple habit: move about 25% to 30% of every gig payment into a separate savings account for taxes. Your real amount may be lower or higher.
Personal payments are not income
Money from friends for a dinner or rent share is not business income. On Venmo or PayPal, mark personal payments as personal.
Common mistakes
Spending everything and getting a big tax bill in April.
Not keeping a mileage log.
Starting gig work on a visa that does not allow it.
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