Turo Host Taxes in Missouri - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Missouri?

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

Missouri Specific Rules: Missouri has a graduated income tax system. This means the tax rate you pay depends on your total taxable income. Your Turo net profit (after deductions from Schedule C) will be added to your other income (wages, investments, etc.) to determine your overall Missouri taxable income and the applicable tax rate. Missouri Form MO-1040 is used to file your state income tax return. You'll likely need to make estimated tax payments quarterly if you expect to owe $1,000 or more in Missouri income tax.

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 Missouri:

• 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!
• Vehicle Depreciation: You can deduct a portion of your vehicle's cost each year through depreciation. There are different methods (e.g., standard mileage vs. actual expenses), and the best option depends on your specific situation.
• Insurance Costs: The portion of your vehicle insurance premium directly related to the period your vehicle was available for rent on Turo is deductible. If you have a personal policy, you'll need to calculate the business-use percentage.
• Turo Fees & Software: Fees paid to Turo, as well as the cost of any software or apps used to manage your Turo business (e.g., accounting software, scheduling tools) 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.

You’ll calculate this tax on Schedule SE (Self-Employment Tax). However, you only pay self-employment tax on earnings over $400. The good news is you can deduct one-half of your self-employment tax from your gross income on Form 1040, which helps reduce your overall tax burden.

Closing Tip for Missouri 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. Don't hesitate to consult with a qualified tax professional (like myself!) to ensure you're taking all eligible deductions and complying with both federal and Missouri tax laws. Proper planning can save you significant money and stress during tax season.