As a worker on KOVR, you're classified as an independent contractor. This means you're responsible for managing your own taxes, including self-employment tax. Here's what you need to know.
Disclaimer: This article provides general information only and should not be considered tax advice. Consult a qualified tax professional for guidance specific to your situation.
Independent Contractor Status
When you work through KOVR, you're not an employee of KOVR or the businesses you work for. Instead, you operate as an independent contractor. This gives you flexibility but also means:
- No taxes are withheld from your payments
- You're responsible for paying self-employment tax
- You may need to make quarterly estimated tax payments
- You can deduct eligible business expenses
Form 1099-NEC
If you earn $600 or more through KOVR in a calendar year, we'll send you a Form 1099-NEC (Non-Employee Compensation). This form reports your total earnings to you and the IRS.
When You'll Receive It
1099 forms are sent by January 31st of the following year. For example, if you worked in 2025, you'll receive your 1099 by January 31, 2026.
How to Access It
Your 1099 will be available in two ways:
- Digital – Download from your KOVR account under Settings → Tax Documents
- Mail – A paper copy sent to your address on file
Verify Your Information
Make sure your legal name, address, and Social Security Number (or EIN) are correct in your account settings. Incorrect information can delay your 1099.
Self-Employment Tax
As an independent contractor, you'll pay self-employment tax in addition to regular income tax. Self-employment tax covers:
- Social Security – 12.4% (up to the annual wage base)
- Medicare – 2.9%
The total self-employment tax rate is 15.3% on your net earnings. However, you can deduct half of this amount when calculating your adjusted gross income.
Quarterly Estimated Taxes
Since no taxes are withheld from your payments, you may need to pay estimated taxes quarterly to avoid penalties. Quarterly due dates are:
- Q1: April 15
- Q2: June 15
- Q3: September 15
- Q4: January 15 (of the following year)
Use IRS Form 1040-ES to calculate and pay quarterly estimates.
Deductible Expenses
As an independent contractor, you can deduct legitimate business expenses from your taxable income. Common deductions for gig workers include:
- Mileage – Driving to and from gigs
- Work supplies – Non-slip shoes, uniforms, tools
- Phone – Portion used for business
- Certifications – Food handler's permits, training courses
- Home office – If you manage your work from home
Tip: Keep receipts and records of all business expenses. Consider using an expense tracking app to make tax time easier.
Tracking Your Earnings
KOVR provides earnings reports in your account. You can view and download:
- Earnings by date range
- Earnings by employer
- Total annual earnings
- Payment history
Go to Settings → Earnings History to access these reports at any time.
Getting Help
For tax questions:
- Consult a tax professional or CPA
- Use tax software like TurboTax or H&R Block
- Visit IRS.gov for official guidance
- Contact KOVR support for questions about your 1099
Key Takeaways
- You're an independent contractor—taxes are not withheld
- Expect a 1099-NEC if you earn $600+ annually
- Budget for self-employment tax (15.3%)
- Consider paying quarterly estimated taxes
- Track and deduct eligible business expenses