Turo Host Taxes in Connecticut - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Connecticut?

Yes, income earned as a Turo host is absolutely taxable, both federally and in Connecticut. The IRS considers Turo hosting a business activity, meaning you’ll need to report your earnings and expenses.

Federal Requirements: You’ll report your Turo income and expenses on Schedule C (Profit or Loss From Business), which is filed with your Form 1040. This schedule allows you to deduct all ordinary and necessary business expenses, ultimately determining your net profit or loss.

Connecticut Requirements: Connecticut has a graduated income tax system, meaning the tax rate you pay increases as your income increases. Your Turo net profit (after Schedule C deductions) will be added to your other income (wages, investments, etc.) and taxed at your applicable Connecticut tax bracket. Connecticut generally follows federal adjusted gross income (AGI) as a starting point, but there can be state-specific adjustments. You'll report your Turo income on Connecticut Form CT-1040.

Top Tax Write-offs for Turo Hosts

Maximizing your deductions is key to minimizing your tax liability. Here are some common deductions for Turo hosts in Connecticut:

• Mileage: For 2024, the standard mileage rate is approximately 67 cents per business mile driven for Turo-related activities (picking up/dropping off vehicles, inspections, etc.). Keep a detailed mileage log! You can also deduct actual car expenses (gas, oil, repairs) if you choose, but the standard mileage rate is often more beneficial.
• Vehicle Depreciation: You can deduct a portion of your vehicle’s cost each year through depreciation. There are different depreciation methods (e.g., standard depreciation, Section 179 deduction, bonus depreciation) – consult with a tax professional to determine the best option for your situation.
• Turo Fees & Commissions: The fees Turo charges for listing and transactions are deductible business expenses.
• Cleaning & Maintenance: Costs associated with cleaning, detailing, and maintaining your vehicle specifically for Turo rentals are deductible. This includes car washes, waxes, and minor repairs.
• Insurance: The portion of your car insurance premium directly related to your Turo hosting activity may be deductible. This can be complex, so documentation is crucial.

The 15.3% Self-Employment Tax Surprise

As a Turo host, you're considered self-employed. This means you're responsible for paying both the employer and employee portions of Social Security and Medicare taxes – collectively known as self-employment tax. This totals 15.3% (12.4% for Social Security and 2.9% for Medicare) on your net earnings from Schedule C above $400.

You’ll calculate this tax on Schedule SE (Self-Employment Tax). The good news is you can deduct one-half of your self-employment tax from your adjusted gross income on Form 1040, which can help reduce your overall income tax liability.

Closing Tip for Connecticut Residents

Navigating taxes as a Turo host can be complex, especially with Connecticut’s graduated income tax system and the added layer of self-employment tax. I strongly recommend keeping meticulous records of all income and expenses throughout the year. Consider using accounting software designed for self-employed individuals. Finally, consulting with a qualified US Tax Accountant (like myself!) who understands the nuances of the sharing economy and Connecticut tax law can ensure you’re maximizing your deductions and complying with all applicable regulations. Don't hesitate to reach out for personalized advice – proactive tax planning can save you significant time and money in the long run.