Overview
In this article, we’ll discuss what being a KARE HERO means and how it affects your taxes.
Worker classification
By working with KARE, you are considered an “independent contractor” commonly referred to as “contractors, 1099 employees, 1099 workers, etc…” The number 1099 refers to the tax form that “1099 workers” receive from their employer. This form lists how much money was paid out over the course of the year.
The IRS classifies workers who receive 1099s as nonemployees. A nonemployee is subject to different working conditions and doesn’t receive the same benefits and payroll deductions as a traditional employee.
KARE’s responsibility
When you sign up with KARE, we require you to sign a W-9 form which helps us identify your taxpayer identification number. This helps us send tax forms to at the beginning of the following year. You can find your W-9 form by going to Profile > W-9 Form on the Heroes app.
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If you earned money (usually over $600) with KARE over the course of the year, we send you a 1099-NEC form, typically in email. If you cannot find it, check your “junk” or “spam” folders or reach out to KARE. Anyone earning less than $600 will not receive a 1099 form. [verify]
Keep this for your records so you can report the proper amount of income when filing taxes.
HERO responsibility
It is the the “independent contractor’s” responsibility to report income and pay taxes. KARE does NOT take out taxes or expenses that are typically taken out with a traditional employer.
Some of the benefits of being an independent contractor is that you are able to deduct certain expenses from your taxes such as:
- Mileage to and from a shift
- Portions of your car payment
- Portions of your cell phone bill
- Equipment or supplies purchased to do your job (such as scrubs, uniforms)
- Portion of any home computer, home office equipment or more that are used to find work with KARE
Troubleshooting
Please reach out to herosupport@doyoukare.com for any help. We are available Monday – Sunday between 8:00 AM CT – 7:00 PM CT. We cannot give tax advice but can assist in any troubleshooting with changing profile information.
Disclaimer
Any tax and legal information is merely a summary of our understanding and interpretation of the current laws and regulations and is not exhaustive. Please consult with a legal or tax counsel for advice and information concerning your particular situation.
