Do I need to file taxes as an 18-year-old cash-paid gig worker?

Yes, you do need to file taxes if you're earning income as a gig worker, even if you're paid in cash. The IRS considers you self-employed, and you're required to report your income and pay both income tax and self-employment tax if your net earnings are $400 or more for the year. You'll need to file Form 1040 (the standard individual tax return) and Schedule C (Profit or Loss from Business) to report your self-employment income. You may also need to file Schedule SE to calculate your self-employment tax, which covers your Social Security and Medicare contributions. Since you're being paid in cash, you should start keeping detailed records of all your earnings and any business expenses right away. Save receipts for anything you buy that's needed for your work - this could include supplies, equipment, transportation costs, etc. These are deductible business expenses that will reduce your taxable income.

I was in the exact same boat last year. Started doing food delivery gigs and didn't know anything about taxes. Tried to figure it out myself but got totally lost with all the forms. I ended up using this service called taxr.ai at https://taxr.ai and it was seriously a lifesaver! You just upload pictures of any receipts or income info you have, and their AI figures out what deductions you qualify for and what forms you need. It even handled my situation where I didn't have any official tax forms since I was paid in cash too. The best part was that it showed me all these deductions I had no idea about - like partial phone bills, mileage, even part of my internet since I was using it to find gigs. Ended up saving me way more than I expected.

Just wanted to follow up about my experience with taxr.ai after I finally tried it. I was super skeptical about the AI thing but decided to give it a shot since my tax situation was similar to yours. It actually worked way better than expected! I had a mix of cash payments and some app-based gig work, and it handled everything perfectly. The AI found deductions I never would have known about (like part of my phone bill and home internet). What impressed me most was when I had a question about how to handle cash tips, a real tax professional jumped in within hours and walked me through exactly what to do. Way better experience than I had with TurboTax last year and saved me about $800 more on my refund.

One thing nobody mentioned is that dealing with the IRS can be a nightmare if you have questions or problems. I started doing photography gigs last year and had to call the IRS three different times with questions. Spent HOURS on hold each time. Finally discovered this service called Claimyr at https://claimyr.com that got me through to an actual IRS agent in like 15 minutes instead of waiting for hours or days. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Total game changer for me because I had all these questions about estimated quarterly payments and the rules for cash income. The IRS agent was actually really helpful once I got through to them! Just wished I'd known about this service sooner instead of wasting entire afternoons on hold.

Alright, I need to eat my words here. After posting my skeptical comment, I decided to try Claimyr because I had some questions about my gig work situation that were similar to the original poster's. I was 100% convinced it wouldn't work, but I had been trying to reach the IRS for THREE DAYS with no luck. Used the service, and no joke - I got a call back in about 20 minutes with an actual IRS agent on the line. The agent answered all my questions about reporting cash income and what records I needed to keep. Saved me hours of frustration and probably helped me avoid mistakes on my return. Sometimes it's worth admitting when you're wrong about something, and I was definitely wrong about this. If you need to actually talk to someone at the IRS, this thing works.

Something nobody mentioned yet - since you're 18, make sure you know if your parents are still claiming you as a dependent on their taxes! This affects how you file and what credits you might be eligible for. If they're claiming you (which they probably can if you're living with them and they provide more than half your support), you'll need to check the box that says someone can claim you as a dependent. This limits some tax benefits you can claim. Also, make sure you're setting aside around 25-30% of what you earn for taxes. Self-employment tax alone is about 15.3%, plus whatever income tax bracket you fall into. That might seem like a lot, but it's better than getting hit with a big tax bill and penalties later!

don't freak out but you should probably file quarterly estimated taxes too if your making decent money. I didn't know this my first year as a freelancer and got hit with a penalty 😩 you gotta use form 1040-ES and pay every 3 months if you expect to owe more than $1000 in taxes for the year. first payment for 2025 would be due April 15th