true
  • Meet Claudell, one of our tax experts.
    TurboTax Live Assisted Basic
    File 100% FREE with expert help: Get live help from tax experts, plus a final review before you file — all free.
    Simple tax returns only.
    See if you qualify. Must file by 3/31.
Top
  1. TurboTax /
  2. Tax Calculators & Tips /
  3. Tax Tips Guides & Videos /
  4. Jobs and Career /
  5. Tax Tips for Handymen and Odd Jobs

Tax Tips for Handymen and Odd Jobs

Updated for Tax Year 2022 • December 1, 2022 08:15 AM


OVERVIEW

If you work as a handyman or do odd jobs around town for money, you are operating a business in the eyes of the IRS. Since you own your own business, you're likely a self-employed sole proprietor. This means you'll have lots of potential tax deductions to investigate.


Self-employment taxes done right

Let a tax expert do your taxes for you with Live Full Service Self-Employed.

Backed by our Full Service Guarantee

Handyman working on kitchen plumbing

Reporting Business Income

When you work for yourself, you file the regular Form 1040 as a self-employed person. However, instead having your income reported to you on a Form W-2 as wages, salary or tips, you report it yourself as business income using Schedule C.

But you don't necessarily report the total sum of all income you receive from your handyman business. First use Schedule C to calculate your net income after taking all appropriate business deductions.

Handyman Business Deductions on Schedule C

If you pay for something that helps you earn income from your handyman business or odd-job work, you may be able to deduct it as a business expense. Examples of allowable business deductions include:

  • Business use of your car — either actual expenses or the standard mileage rate deduction.  For the first half of 2022 the rate is 58.5 cents per mile and increases to 62.5 cents per mile for the last half of 2022.
  • Equipment, furniture and supplies you use in your business
  • Advertising expenses
  • Home office expenses if you use part of your house exclusively for your business
  • Telephone and Internet — 100% if you use these services only for business, otherwise a proportionated amount
  • Training costs related to being a handyman

Careful Record-Keeping Is Essential

Do yourself a favor and keep careful records of handyman income and expenses from the beginning. This makes preparing your tax returns easier and smoother. Even if you don't work full time at odd jobs, you can make record keeping easier by:

  • Maintaining separate bank accounts for your handyman business
  • Applying for new credit cards used only for your business
  • Storing all receipts and invoices in organized files
  • Keeping precise mileage logs reflecting odometer readings by job name

Self-Employment Taxes and Estimated Payments for Handyman and Odd-Job Income

As a self-employed handyman, you have to pay self-employment tax on your net profit. This tax — currently set at 15.3% — includes amounts to fund Social Security and Medicare. Complete and attach Schedule SE, Self-Employment Tax to your Form 1040 to calculate the amount of self-employment tax you owe.

You'll also might need to file quarterly estimated tax payments during the year. Pay these based on the schedule set by the IRS.

Let an expert do your taxes for you, start to finish with TurboTax Live Full Service. Or you can get your taxes done right, with experts by your side with TurboTax Live Assisted. File your own taxes with confidence using TurboTax. Just answer simple questions, and we’ll guide you through filing your taxes with confidence. Whichever way you choose, get your maximum refund guaranteed.

Self-employment taxes done right

Let a tax expert do your taxes for you with Live Full Service Self-Employed.

Backed by our Full Service Guarantee

Taxes done right for freelancers and gig workers

TurboTax Self-Employed searches 500 tax deductions to get you every dollar you deserve.

Looking for more information?