Are Rover Fees Tax Deductible? (And Do They Count as Advertising?)

KKBy Kashif Khan, Founder of Pupline

Updated June 8, 2026·8 min read

Yes. The Rover service fee that comes out of your pay is a deductible business expense. It is an ordinary and necessary cost of running your pet-care business, so it lowers the income you pay tax on. The only real questions are which expense category it belongs in (it is usually recorded as "commissions and fees", though "advertising" is defensible), and how to make sure you actually claim it, especially if you receive a 1099-K.

This guide explains how the fee reaches your tax return, whether it counts as advertising, the 1099-K trap that makes some sitters overpay, and how to track it. It is general information, not tax advice. Rules vary by country and state, so check with a qualified tax professional about your own situation.

Does the $20 Rover fee count as advertising?

When Rover keeps 20% of a $100 booking, that $20 is money you earned and then paid back to the platform. Because Rover finds you clients, lists your profile and markets your services, plenty of sitters reach for the "advertising" box on their tax form. That is an understandable instinct, and it is not wrong in spirit: a marketplace cut is partly a marketing and lead-generation cost.

In practice, though, most accountants record a platform's percentage cut as a commission or service fee rather than advertising. On a US Schedule C, that means it tends to land under "Commissions and fees" rather than "Advertising". The distinction rarely changes your tax bill, both lines are fully deductible, but being consistent matters:

• Commissions and fees is the cleanest fit for a percentage the platform takes out of each completed booking. This is where most pet-care pros put Rover and Wag service fees.
• Advertising is the better home for money you spend to get found: paid social ads, flyers, a boosted profile, business cards, your website.

If you would rather group the Rover cut under advertising because, to you, that is what it buys, the important thing is to pick one category and use it every year. What the IRS cares about is that the expense is real, business-related, and recorded, not whether it sits on line 8 or line 10.

How the Rover fee actually reaches your taxes

Here is where money is quietly lost. Rover does not send you $100 and then bill you $20. It pays you the net: on a $100 booking you receive $80, and the $20 fee never touches your bank account. That makes it easy to forget the fee even happened, which is fine, until a 1099-K shows up.

There are two correct ways to record it:

1. Gross income, then deduct the fee. Report the full $100 as income and the $20 as a commissions/fees expense. Net taxable result: $80.
2. Net income only. Report just the $80 you received and claim no separate fee.

Both arrive at the same taxable number. The catch is which one matches the 1099-K you may receive.

The 1099-K trap

If your card-processed payments cross the reporting threshold, Rover (through its payment processor) can issue a 1099-K that reports your gross earnings, the $100, not the $80 you actually pocketed. If you only report the $80 you received and ignore the fee, your reported income will not match the 1099-K, and you will look like you under-reported.

The fix is method 1: report the gross, then deduct every fee. You end up taxed on the same $80, your numbers reconcile with the 1099-K, and you are not paying tax on $20 you never kept. This is exactly why tracking the fee matters even though it is invisible in your payouts.

See your deductible fee total

The fastest way to know what to deduct is to add up what Rover actually took. Use the calculator to see the service fee on a booking, or your monthly and yearly total, that figure is your deductible expense.

Multiply a typical month by twelve and the deduction is often larger than sitters expect: a walker doing 20 walks a month at $25 hands Rover roughly $1,200 a year, and every dollar of it is deductible. For the full fee breakdown, see how much Rover takes from sitters.

How to record Rover fees, step by step

1. Keep the gross. Note each booking's full rate, not just your payout. Rover's earnings history and your payout statements show both.
2. Capture the fee. Record the service fee for each booking (or total it monthly) as a commissions/fees expense.
3. Stay consistent. Use the same category each year, commissions and fees is the common choice, advertising is defensible if you prefer it.
4. Hold your records. Keep payout statements, your earnings export and any 1099-K with your tax records in case you are ever asked to back up the numbers.
5. Remember tips are yours. Rover does not take a cut of tips, so there is no fee to deduct on tip income, but the tips themselves are still taxable income.

Other deductions pet-care pros miss

The platform fee is rarely your only write-off. Ordinary, business-related costs are generally deductible too. Commonly missed ones for sitters, walkers, groomers and trainers include:

• Mileage or vehicle costs for drives to visits, walks and the supply store (track your miles).
• Supplies: leashes, poop bags, treats, toys, cleaning products, crates.
• Insurance and bonding for your pet-care work.
• A share of your phone and internet, the business-use percentage.
• Software you run the business on, including your Pupline subscription, scheduling and invoicing tools.
• Marketing: ads, business cards, your website domain.
• Licenses, permits and professional memberships.
• A home office, if you use part of your home regularly and exclusively for the business.

Keep receipts and a simple log. The cleaner your records, the more you confidently claim and the less you overpay.

The bigger lever: keep more before tax even matters

Deducting the Rover fee softens the blow, but it does not give the money back. A deduction only saves you your tax rate on that dollar; booking a client directly saves you the whole dollar.

That is why so many full-time pros use Rover as a discovery channel, then move their repeat regulars onto direct booking. When a client books you directly, there is no 20% service fee to pay (and nothing to deduct, because there is no fee), the owner skips the booking fee on their side, and you keep 100% of your rate. The trade-off is that you need a tidy way to schedule, document and invoice those clients yourself.

That is exactly what Pupline is for: clients, scheduling and branded invoices from your phone for one simple monthly price, with no commission on any booking. See the two models side by side in pet care software vs Rover, or the Rover alternative comparison. And when you do invoice directly, our free dog walking invoice and pet sitting invoice templates give you a clean, printable record for your books.

Frequently asked questions

Are Rover fees tax deductible?

Yes. The service fee Rover takes from your pay is an ordinary business expense and is deductible, which lowers your taxable self-employment income. Record it as a commission/fee (or advertising) expense and keep your payout records.

Should I report the gross booking amount or just my payout?

If you receive a 1099-K, report the gross and then deduct the fees, so your numbers match the form and you are taxed only on what you actually kept. If you have no 1099-K, reporting your net payout reaches the same taxable figure, but recording gross income with a separate fee expense is the cleaner habit.

Is the Rover fee "advertising" or "commissions and fees"?

Most tax professionals record a platform's percentage cut under commissions and fees. Treating it as advertising is defensible, since the platform markets you, and it is still fully deductible. Pick one category and apply it consistently.

Does Rover take a cut of tips, and are tips taxable?

Rover does not take a service fee from tips, so there is no fee to deduct on tip income. The tips themselves are still taxable income and should be reported.

Will I get a tax form from Rover?

You may receive a 1099-K (or 1099-NEC, depending on the year and rules) if your earnings cross the reporting threshold. Even if you do not receive a form, your pet-care income is still taxable and the fees are still deductible.

This article is general information for pet-care professionals, not tax or legal advice. Tax rules differ by country, state and year, and your situation is unique. Confirm how to categorise and claim these expenses with a qualified accountant or tax professional before you file.