Turo Host Taxes in Kansas - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Kansas?

Yes, income earned as a Turo host is absolutely taxable, both at the federal and Kansas state levels. 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.

Kansas Specific Rules: Kansas has a graduated income tax system. This means the tax rate you pay depends on your total taxable income. Your Turo net profit (from Schedule C) will be added to your other income (wages, investments, etc.) to determine your Kansas taxable income and the applicable tax rate. Kansas also requires you to file a state income tax return (Form K-40) to report this income. You'll likely need to make estimated tax payments throughout the year if you expect to owe $1,000 or more in Kansas income tax.

Top Tax Write-offs for Turo Hosts

Maximizing your deductions is key to minimizing your tax liability. Here are some common write-offs for Turo hosts in Kansas:

• Mileage: You can deduct the business portion of your vehicle’s mileage. For 2024, the standard mileage rate is approximately 67 cents per mile (always verify the official IRS rate at IRS.gov). Keep a detailed mileage log!
• Vehicle Depreciation: Instead of mileage, you can deduct depreciation. This allows you to write off a portion of the vehicle's cost over its useful life. This can be more beneficial if your vehicle is newer. Consult with a tax professional to determine the best method for your situation.
• Cleaning & Maintenance: Expenses related to cleaning, detailing, oil changes, tire rotations, and other vehicle maintenance are deductible. Keep all receipts!
• Turo Fees & Software: The fees you pay to Turo, as well as the cost of any software or apps used to manage your Turo business (e.g., scheduling tools, expense trackers) are deductible.

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. This combined tax is 15.3% (12.4% for Social Security and 2.9% for Medicare) on your net earnings from Schedule C that exceed $400.

You’ll calculate this tax on Schedule SE (Self-Employment Tax) and include it with your Form 1040. Don't be alarmed when you see this amount – it’s a normal part of being self-employed. You can deduct one-half of your self-employment tax from your adjusted gross income (AGI) on Form 1040, which helps reduce your overall tax burden.

Closing Tip for Kansas Residents

Navigating self-employment taxes can be complex. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software designed for self-employed individuals. And, if you're unsure about any aspect of your tax obligations, don't hesitate to consult with a qualified tax professional in Kansas. Proper planning and accurate record-keeping will ensure you comply with both federal and state tax laws and maximize your potential savings.