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Tax Responsibilities at Hands N Paws

What’s covered in this article! 👉

At Hands N Paws, you operate as an independent contractor. This model offers you unparalleled flexibility and control over your work-life, and with that comes the responsibility of managing your own taxes. This comprehensive guide will walk you through everything from your core obligations and how to file correctly, to advanced strategies for maximizing your deductions and keeping more of your hard-earned money.

Our Tax Philosophy: You are the CEO
We handle issuing your pay and providing your annual tax forms, empowering you to take the lead on filing and leveraging deductions. This approach puts you in complete control of your financial outcomes, turning tax season from a source of stress into an opportunity for optimization.

The Two Core Tax Concepts

Understanding these two foundational ideas is critical to managing your taxes successfully and confidently.

A. Your Tax Obligations (The Basics)

As an independent contractor, you are considered self-employed by the IRS. This means no taxes are automatically withheld from your payday earnings at Hands N Paws.

  • You are solely responsible for calculating and paying your own income tax and self-employment tax. The self-employment tax rate is currently 15.3%, which covers your contributions to Social Security and Medicare.
  • You will receive a Form 1099-NEC from us via email after the end of the tax year. This form reports your total non-employee compensation from Hands N Paws, and you will use it to report your income when you file your return.

B. Tax Write-Offs (Your Most Powerful Financial Tool)

Tax write-offs, also known as deductions, are legitimate and ordinary business expenses that you can subtract from your total taxable income.

  • Failing to track your expenses throughout the year can result in unnecessary financial loss and a stressful scramble when it’s time to file.

How to Fulfill Your Tax Responsibilities

Follow this step-by-step process to stay compliant, organized, and confident.

1. Track Your Expenses Meticulously. This is the most critical habit for a successful contractor.

  • Use Technology: The easiest and most automated way to track expenses is by using a dedicated app like Keeper, which is designed for freelancers/gig-workers.

2. Receive and Secure Your 1099. We will email your Form 1099-NEC in January for the previous tax year.

  • What to do: Save this form to a secure folder on your computer. It is your primary document for reporting income.

3. Choose Your Filing Method. When you’re ready to file, you have two main paths:

  • Tax Software: Use a platform like TurboTax, H&R Block, or FreeTaxUSA. These programs have specific interview workflows for freelancers and independent contractors, guiding you through reporting 1099 income and claiming deductions.
  • Professional Accountant: Hire a tax professional (like our partners, JC Tax Pros) or have a FREE consult with an accountant for personalized advice, complex situations, and maximum peace of mind.

4. Input Your Information Accurately. Follow the steps in your chosen software or provide your documents to your accountant. You will input your income from the 1099 and list all your itemized work expenses.

5. Review and Submit Your Return. Double-check all entered information for accuracy before submitting your final tax return to the IRS.

The biggest error new contractors make is not tracking expenses from their very first day on the job. This leaves money on the table and creates a last-minute hassle. Start a simple organizational system now—your future self will thank you during tax season.

Strategic Tax Planning: How to Work Smarter

Go beyond mere compliance and use these strategies to optimize your financial position.

Understand Quarterly Estimated Taxes
If your estimated tax bill for the year is $1,000 or more, the IRS requires you to make estimated quarterly tax payments. Failing to do so can result in penalties.

Quarterly Tax Deadlines:

  • 🌷 April 15th (First Quarter)
  • 🏖️ June 15th (Second Quarter)
  • 🍁 September 15th (Third Quarter)
  • 🌲 January 15th of the following year (Fourth Quarter)

Master Vehicle Deductions
Vehicle expenses are typically the largest deductible expense for pet care professionals. You have two options, but you must choose one—you cannot use both. Click here to learn more.

  • Standard Mileage Rate: Track all work miles driven and deduct the standard IRS rate for each mile. You can do this directly in Precise Petcare using the (clock) symbol in the top right corner of your screen. Learn more here.
  • Actual Vehicle Expenses: Deduct the actual costs of gas, oil changes, maintenance, insurance, registration, and repairs, based on the percentage of time you use your vehicle for business.

💡 Pro Tip: For most pet care pros who do a significant amount of driving, the Standard Mileage Rate is simpler to track and often yields a larger deduction. You must make the choice in the first year you use a vehicle for work.

Leverage Common Deductions for Pet Sitters & Dog Walkers
Here is a detailed list of common deductible expenses in our line of work:

  • 🚗 Car Expenses: Gas, mileage, maintenance, lease payments, insurance (based on work use).
  • 🐾 Pet Care Supplies: Poop bags (and dispensers!), dog treats, leashes, harnesses, spare collars, dog toys.
  • 👕 Work Gear & Apparel: Dedicated work shirts, fanny packs, waterproof shoes, rain gear, winter coats, reflective gear.
  • 📱 Technology: A percentage of your phone bill and phone insurance, based on work use.
  • 🚲 Other: Bike maintenance or public transport fares used to get to visits.

Pro Tips for Success

  • Use a Dedicated App from Day One: We highly recommend using Keeper. It automates expense and mileage tracking, helps you discover new write-offs, and allows you to consult with a dedicated accountant. They offer all new users a FREE 7-day trial.
  • Plan for Large Bills: If you have a high income, proactively set aside 25-30% of your earnings in a separate savings account to cover your quarterly or annual tax bill.
  • When in Doubt, Ask a Pro: Complex situations, like purchasing a new vehicle or working in multiple states, are best handled by an accountant. It’s an investment that often saves you more money than it costs and provides invaluable peace of mind.

Remember: Being proactive and organized with your taxes is a non-negotiable part of being a successful independent contractor. Using these strategies ensures you meet your legal obligations while legally maximizing your take-home pay.

Getting Additional Help

For Hands N Paws specific tax questions, contact our dedicated accounting firm for expert guidance:

JC Tax Pros
Phone: 614-453-5902 (Ask for Joe or Joon!)
Email: support@jctaxpros.com

For General Tax Help & Automated Tracking:

Keeper App: A top-rated resource for freelancers to automatically track write-offs, estimate quarterly taxes, and consult with tax experts.

We are not accepting new clients until 2026.

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By signing this agreement, you confirm that you’ve read, understood, and agreed to the policies below. Your signature also allows us to add your email to our mailing list (you can change your preferences anytime).

Key Terms
– Client = You
– Company = Hands N Paws
– Team Member(s) = Our pet care professionals

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Emergency Care Policy
You’re responsible for providing emergency instructions and medical details for your pet. Otherwise, we’ll contact your vet or an emergency clinic in case of an emergency. Team Members may make urgent care decisions (excluding euthanasia) if immediate action is needed. You’re responsible for any veterinary costs, and Hands N Paws isn’t liable for circumstances beyond our control.

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Home Access Policy
A lockbox with a spare key is required to ensure we can access your home. Garage or keypad codes are okay but don’t replace the need for a lockbox. Provide clear access instructions in your account notes. If entry is complicated, email us a video walkthrough to avoid delays. Our priority is your pets, not troubleshooting access!

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Cancellation Policy
We get it—plans change! Here’s our policy:
– 48+ hours notice: 100% refund as Account Credit.
– 24-48 hours notice: 50% refund as Account Credit.
– Less than 24 hours: No refund.
Refunds are issued as Account Credits and auto-apply to your next invoice.

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Safe & Sanitary Environment
You understand and agree that the environment in which we provide services is reasonably sanitary and safe. If we determine that your home is unsanitary or unsafe, we’ll let you know and take appropriate action, which may include stopping services.

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Service Termination Policy
In rare cases, if we believe there’s a serious danger to the health or safety of our Team Members or your pets, we may terminate services during a scheduled period. If this happens, you agree to cover the cost of boarding your pet or arranging alternative care until you return. We’ll do our best to notify you and/or your emergency contacts in these situations.

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Third-Party Access Policy
You’re responsible for letting us know if anyone else will have access to your home during the scheduled services. Hands N Paws is not liable for any loss, expense, or damage caused by third parties entering your home during this time.

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Vaccination, Licensing & ID Policy
Before services begin, all pets MUST:
– Be up-to-date on vaccinations and local licensing.
– Wear an ID tag with your contact info or be microchipped for identification.

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Pet Safety Policy
For everyone’s safety, dogs must remain leashed during walks. Off-leash walks are strictly prohibited.

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Accurate Pet Information Policy
Keep your pet’s info in your account accurate and up-to-date. Every three months, you’ll be prompted to review and confirm your pet’s details before being able to request services. Hands N Paws isn’t responsible for issues caused by outdated or incorrect information.

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Provide Visuals Policy
For complex routines or home entry instructions, please record a video and email it to us. A visual guide helps us better understand your needs and ensures smooth service delivery.

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Flexible Arrival Times
Services are scheduled within a two-hour arrival window to accommodate travel and other clients. While we’ll do our best to meet your preferred times, exact arrival times can’t be guaranteed.

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Trial Visits
For extended pet care (e.g., vacation services), we require a Trial Visit while you’re still in town. This helps ensure your pet is comfortable with our team before committing to long-term care.

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Service Request Approval & Availability
We do our best to accommodate all requests, but approval depends on Team Member availability. After submitting a request, you’ll receive an email confirmation or declination within 48 hours. If declined, we’ll work with you to explore alternatives.

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Communication Policy
Team Members will update you on your pet’s care through post-service journal entries in your account. If they have urgent questions during a service, they’ll call you using the number on file. If you receive a Team Member’s personal number, please don’t use it freely. Keep all communication in your account by responding to journals, updating service notes, or, if needed, contact our main office.

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Team Appreciation
Our Team Members work hard to care for your pets, and a little appreciation goes a long way! Feel free to leave kind journal comments, rate services, or tip for exceptional care. It means the world to us!

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Meet N Greets
A Meet N Greet is required before starting services to ensure we understand your pet’s needs and provide the best care. New Clients can schedule at *www.myhandsnpaws.com*; Existing Clients can book through their account.

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Pricing & Surcharges
Visit *www.myhandsnpaws.com* for the most up-to-date pricing. Additional fees may apply in certain situations:
– Last-Minute Services: $15 for requests made within 24 hours.
– Holiday Services: $20 per service on major holidays.
– Additional Pets: $7 per pet beyond the first two.
– Service Adjustments: Fees may apply if additional time or tasks are required.
– Account Assistance Fee: If you request us to schedule services, cancel services, update pet notes, or otherwise manage your account without first attempting to do so yourself, a surcharge of 10% of your most recent invoice (minimum $25) will be applied. Our handy Client Support Center is available to guide you step-by-step in managing your account.

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Payment & Billing
We accept all major credit/debit cards (Visa, Mastercard, Amex, Discover). A valid card must be stored securely in your account.
– Ongoing Services: Auto-charged every Friday for the previous week’s services.
– One-Time Services: 50% deposit charged upon confirmation; the rest is due by the last service date (auto-charged).
– Declined Payments: You’ll be notified immediately and have 24 hours to resolve it. A 10% late fee (minimum $20) applies after a second declined attempt.

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Contract Terms
This agreement starts when you sign it and continues until either of us ends it. You can book additional services online anytime, depending on availability. By signing, you authorize Hands N Paws to enter your home and care for your pets without needing extra contracts for confirmed bookings.

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Thanks for trusting Hands N Paws with your furry family! 🐾