Calculate the true hourly value of gig work

Gross revenue is only the starting point. A more useful comparison subtracts the costs required to produce the income and divides what remains by every hour the work consumes.

Include the invisible hours

Count waiting, driving to a busy area, communicating with customers, buying supplies, maintaining equipment and tracking records. Excluding unpaid time can make one opportunity look better than it is.

Separate operating cost from tax deductions

Your actual vehicle or equipment cost and the amount permitted as a tax deduction are different concepts. Use a realistic operating-cost assumption for profitability and obtain current tax guidance separately.

Reserve for taxes

The IRS states that gig-economy income is taxable even when a worker does not receive an information return. A calculator can reserve a percentage for planning, but it cannot determine an individual tax liability.

Educational information only. Verify current tax requirements with the IRS or a qualified professional.