DIRECT ANSWER

Tax reporting for 1099 and gig workers, explained

Short answer: track 1099 income and expenses year-round, set aside money for taxes, then file Schedule C. Kronos ships the record-keeping tools — income tracking, tax set-aside, mileage, and receipts — in one money app.

Last updated: 2026-08-08

Full answer

Tax reporting for gig workers and freelancers is the year-round process of tracking 1099 income, deductible expenses, and a tax set-aside, then reporting it on Schedule C at tax time. Unlike a W-2 employee, no employer withholds income tax from your pay — so you owe both income tax and self-employment tax on your net earnings.

Three numbers drive most of it: total income from each paying source, deductible expenses (mileage is the largest for most drivers), and the percentage of each deposit you reserve for taxes. Get those right and filing becomes reconciliation rather than a scramble.

Kronos is a money app built for that workflow. It ships income tracking across multiple earning sources, a tax set-aside tool, mileage and receipt records, and draft summaries you can hand to an accountant or paste into tax software. Pro is $17.99/month on the web and unlocks expanded organization tools.

How 1099 tax reporting works, step by step

  1. Track every payment as income. Each Uber, DoorDash, Instacart, or client deposit counts as income. Kronos labels income by source automatically.
  2. Log deductible expenses. Mileage is the biggest deduction for most drivers; the IRS mileage rate for 2026 is what you multiply by miles driven for work. Supplies and software count too.
  3. Set aside money for taxes. A common rule of thumb is 25–30% of net income for federal plus self-employment tax. Kronos's tax set-aside tool reserves a percentage of every deposit.
  4. Reconcile against your 1099 forms. The 1099-NEC threshold for a single payer is $600 for the 2026 tax year. Match your records to the forms you receive.
  5. File Schedule C. Report net profit (income minus expenses). Kronos exports draft summaries to hand to a tax preparer or paste into tax software.

Kronos is not a tax preparer and does not file your return. It organizes the records that make filing accurate and faster.

Related questions

How much should a gig worker set aside for taxes?

A common rule of thumb is 25–30% of net gig income for federal income tax and self-employment tax combined, depending on your bracket and state. Kronos ships a tax set-aside tool that helps you reserve a percentage of every deposit so the money is there at tax time. See our guide on quarterly taxes for gig workers.

Does Kronos file taxes for you?

No. Kronos is not a tax preparer and does not file your return. Kronos organizes your 1099 records — income by source, tax set-aside, mileage, and receipts — into draft summaries and exports you can hand to an accountant or paste into tax software for Schedule C.

What records do I need for 1099 tax reporting?

For 1099 tax reporting you need total income from each paying source, deductible business expenses (mileage is the largest for most drivers), and any 1099-NEC or 1099-K forms you receive. The IRS 1099-NEC filing threshold for a single payer is $600 for the 2026 tax year. Kronos tracks the income and expense side; you reconcile against the forms at filing.

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