Gig Tax Guide
Wag Taxes: What Every Walker and Sitter Needs to Know
Wag treats walkers and sitters as independent contractors, so no taxes are withheld from your earnings. You owe your own federal, state, and self-employment taxes on your net income — and pet supplies, mileage to clients, and even part of your home (if you board) can be deductible. Here's how Wag taxes work.
How Wag taxes work
You're an independent contractor
No taxes are withheld from your pay. You owe federal and state income tax plus self-employment tax on your net earnings.
Self-employment tax is 15.3%
That's 12.4% Social Security + 2.9% Medicare on your net earnings — on top of regular income tax. It funds the benefits an employer would normally split with you.
Deductions lower your taxable income
Business expenses — equipment, software, supplies, phone, and mileage — reduce the net earnings you're taxed on. Tracked properly, they often save more than any other single move.
You pay as you go, quarterly
Instead of one April bill, the IRS expects estimated payments four times a year. Paying quarterly avoids an underpayment penalty.
Do Wag walkers and sitters get a 1099?
Wag processes payments as a third-party platform, so it generally reports earnings on a Form 1099-K when you meet the IRS reporting threshold for that year. The 1099-K reflects gross earnings before Wag's service fee.
Reporting thresholds for the 1099-K have changed in recent years, so you may not always receive a form. Either way, you must report all of your Wag income — and you deduct Wag's service fee as a business expense.
What Wag walkers and sitters can deduct
Business mileage
Every mile driven while online or on a delivery, at the IRS standard mileage rate. Usually the single largest deduction.
Phone & data
The business-use percentage of your phone bill — you cannot work without it.
Tolls & parking
Tolls and parking paid while working are fully deductible (commuting tolls are not).
Hot bags & equipment
Insulated bags, phone mounts, chargers, and other gear bought for the work.
Pet-care supplies
Leashes, treats, waste bags, toys, crates, and cleaning supplies bought for the animals in your care.
Wag service fees
The percentage Wag takes from each booking is a deductible business expense.
Home use for boarding
If you board pets in your home, a portion of home expenses may be deductible — the rules are strict, so confirm with a tax professional.
You can deduct the IRS standard mileage rate or your actual vehicle expenses — not both. For most drivers the standard mileage rate is simpler and larger. Keep a contemporaneous mileage log either way.
Frequently asked questions
Does Wag take out taxes for me?
No. Wag pays walkers and sitters as independent contractors and withholds nothing. You're responsible for setting aside and paying your own income tax and the 15.3% self-employment tax.
How much should I set aside for Wag taxes?
A common rule of thumb is to set aside 25–30% of your net earnings (what's left after mileage and other deductions) to cover self-employment tax (15.3%) plus federal and state income tax. Your exact rate depends on your total household income and state. Use the Tax Set-Aside calculator to get a number for your situation.
Do I get a 1099 from Wag?
Wag typically issues a 1099-K (it processes payments as a third-party platform) when you meet the IRS threshold for the year. Thresholds have changed recently, so you may not always get one — but you must report all income regardless.
What can Wag walkers and sitters deduct?
Pet-care supplies, Wag's service fees, and the business-use share of your phone are common deductions. Mileage driven to walks and client homes is deductible at the IRS standard mileage rate, and if you board pets in your home, part of your home expenses may qualify (the rules are strict — get advice).
When are Wag taxes due?
Self-employed earners generally pay estimated taxes four times a year — around April 15, June 15, September 15, and January 15 — and file an annual return by April 15. Paying quarterly avoids an IRS underpayment penalty.
Authoritative IRS resources
Free calculators for Wag walkers and sitters
Stop guessing what you owe
UnifyOne tracks your pet care earnings, mileage, and tax set-aside automatically — so quarterly taxes are never a surprise.
This guide is educational information, not tax advice. Tax rules, thresholds, and the IRS standard mileage rate change yearly — confirm current figures with the IRS or a qualified tax professional for your situation.