On March 1st, the IRS issued a reminder to all Gig Workers:
Gig economy earnings are taxable
The gig economy is activity where people earn income providing on-demand work, services or goods. Often, it’s through a digital platform like an app or website. Taxpayers must report income earned from the gig economy on a tax return, even if the income is:
- From part-time, temporary or side work,
- Not reported on an information return form – like a Form 1099-K, 1099-MISC, W-2 or other income statement or
- Paid in any form, including cash, property, goods or virtual currency.
So to be super clear, even if you did NOT receive a 1099 or other paperwork, if you earned any side hustel gig money at all, you must must must declare what you earned.
Any of the tax software systems like Tax Cut and Tax Pro and KeeperTax will ask ask about any Gig Economy income so as long as you answer those questions accurately, you will be doing your piece.
AND you can deduct expenses against this income like your home office expenses and any other “ordinary and necessary” expenses for you to fulfill your role.
For free RESOURCES on tax deductions, go over to my website, www.wendybarlin.com