Gig Worker Taxation in California: Key Information

Gig Income and Taxes in California

If you receive income from a gig economy activity, it’s generally taxable, even if you do not receive a tax form:

• 1099-K
• 1099-NEC
• 1099-MISC
• W-2

For California purposes, gig workers such as drivers for app-based transportation and delivery companies (e.g., Lyft, Uber, DoorDash, Instacart, and Postmates) are classified as independent contractors if specified conditions are met.

If you are unsure of your worker classification, refer to Worker classification and AB 5 frequently asked questions.

Estimated California Taxes

If you are an independent contractor (aka freelancer) making money from gig work you are considered self-employed. You may be required to make estimated tax payments. Avoid a penalty by making your payments on time.

Keep Good Records

Some or all of your business expenses may be deductible (subject to the normal tax limitations and rules). Keeping good records of your business expenses will help you to claim the business expense deductions that you are entitled.

Visit Business Expenses (FTB 984) for more information.

What Form to File

Most independent contractors report their gig income on:

• IRS Schedule C, and
• FTB Form 540

If you operate a business entity, visit Business filing information for what form you should file based on your business type.

How to Pay

Visit Payment options.