Each AI training tax calculator here shows how much tax you’ll owe on your pay from one platform and how much to set aside from each payout. I’ve been paid by Outlier AI, Handshake AI and Neevo AI myself.
On all of these platforms, you work as an independent contractor, and nothing is taken out of your pay. That makes it self-employment income: once your profit passes about $433 in a year, you owe 15.3% self-employment tax on top of income tax.
What changes is how you’re paid and which tax form you get. Handshake AI and Mercor send a 1099-NEC, and Outlier sends one once it pays you $2,000 or more. Alignerr depends on whether you’re paid through Deel, PayPal or Stripe. DataAnnotation, Datavio and Neevo pay through PayPal, which only sends a 1099-K above $20,000 and 200 payments a year, and Mindrift is owned by a company in the Netherlands, so don’t count on a form there either. Each calculator covers its own platform’s payouts and forms.
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AI Training Tax Guides
Each AI training tax calculator has a guide that answers whether that platform sends a 1099 and what you’ll owe: Outlier AI taxes, Handshake AI taxes, DataAnnotation taxes, Alignerr taxes, Mercor taxes, Mindrift taxes, Datavio taxes and Neevo AI taxes. For the rules every side hustle shares, see my side hustle tax guide.
These calculators give estimates for informational purposes only. I’m not a licensed financial advisor or tax professional.