The way people work is changing — fast. Whether you’re teaching toddlers, driving a delivery route, or working shifts through an on-demand app, there’s a good chance you’ve come across the term “1099 worker.” But what does that actually mean?
As more industries — child care included — begin offering gig-style work, independent contractor roles are becoming more common. With this flexibility comes great opportunity: control over your schedule, exposure to a variety of workplaces, and the ability to pick up work that fits your lifestyle. But it also comes with one big shift — you’re responsible for your own taxes.
This blog will break down what it means to be a 1099 worker, why it matters, and how to prepare for tax season if you’re earning income this way.
A 1099 worker is someone who’s classified as an independent contractor rather than a W-2 employee. That means:
You might be a 1099 worker if you:
The Benefits:
The Responsibilities:
Being a 1099 worker means you’re effectively a business of one — and that requires a little planning.
Taxes can be intimidating, but with a few proactive steps, you can stay on top of them and avoid surprises at the end of the year.
A good rule of thumb is to save 20–30% of what you earn to cover your tax bill. Because taxes aren’t taken out of your payments, it’s up to you to set that money aside. A separate savings account can help keep it out of sight, out of mind — until tax time.
Keep a record of every payment you receive from each company or client. If you’re using an app or platform, they may offer a dashboard or history page you can reference.
Also track expenses related to your work — such as mileage, supplies, or licensing fees — which may be deductible when you file your taxes.
Companies are required to send you a 1099-NEC form if they paid you $600 or more in a calendar year. You’ll receive this form by the end of January the following year. If you work with multiple companies, you may get multiple 1099s.
Even if you don’t get a 1099 (because you earned under $600), you’re still required to report that income on your taxes.
If you’re earning consistently as a 1099 worker, the IRS may expect you to make quarterly estimated tax payments. A tax advisor or online calculator can help you determine if this applies to you.
Especially if this is your first year doing 1099 work, a tax preparer or advisor can walk you through what’s required. They can help you maximize deductions and avoid penalties.
1099 work is reshaping industries like child care by giving workers the flexibility and freedom to build careers that work for them. But with that freedom comes a new level of responsibility.
If you’re working in a gig-style role — even occasionally — it’s important to understand your classification and plan ahead. Set aside money, track what you earn, and make sure your taxes don’t catch you off guard.
By staying informed and prepared, you can enjoy the benefits of flexible work while building a stable, sustainable path forward.