Turo Host Taxes in Wisconsin - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Turo Host income taxable in Wisconsin?

Yes, income earned as a Turo host is absolutely taxable, both at the federal and Wisconsin state levels. The IRS considers Turo hosting a business activity, meaning you’re considered self-employed.

Federal Taxes: 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 calculates your net profit (income minus expenses). The official 2024 standard mileage rate is 67 cents per mile for business use of your vehicle. Keep meticulous records of all trips and mileage!

Wisconsin Taxes: Wisconsin has a graduated income tax system, meaning the tax rate you pay increases as your income increases. Your net profit from Schedule C will be included in your Wisconsin taxable income (reported on Form 1040-ES if you expect to owe over $1,000 in taxes). Wisconsin also allows for many of the same deductions as the federal government, but it’s crucial to check for any state-specific differences (see the Wisconsin Department of Revenue website – linked in the closing tip).

Top Tax Write-offs for Turo Hosts

• Mileage: As mentioned, you can deduct 67 cents per mile (for 2024) driven for Turo trips. Alternatively, you can deduct actual car expenses (gas, oil, repairs, insurance, registration, depreciation – see IRS Publication 463 for details), but you generally can’t use both methods. Mileage is often simpler.
• Cleaning & Maintenance: Expenses related to cleaning your vehicle (supplies, detailing services) and routine maintenance (oil changes, tire rotations) are deductible. Keep receipts!
• Turo Fees: The fees Turo charges you for using their platform are a deductible business expense.
• Software & Supplies: Costs for any software used to manage your Turo business (e.g., trip tracking apps) or supplies like air fresheners, phone chargers provided to renters, or first-aid kits are deductible.

The 15.3% Self-Employment Tax Surprise

Because you’re self-employed, you’re responsible for 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. However, you only pay this tax on earnings over $400. You’ll calculate this tax on Schedule SE (Self-Employment Tax) and it’s filed along 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.

Closing Tip for Wisconsin Residents

Navigating self-employment taxes can be complex. I strongly recommend keeping detailed records of all income and expenses throughout the year. The Wisconsin Department of Revenue website (https://www.revenue.wi.gov/) is an excellent resource for state-specific tax information and forms. Consider using tax software designed for self-employed individuals or consulting with a qualified tax professional (like myself!) to ensure you’re maximizing your deductions and complying with all applicable tax laws. Wishing you a profitable and tax-efficient Turo hosting experience in Wisconsin!