Include Gig Economy Income On Tax Returns

The gig economy is also referred to as the on-demand, sharing, or access economy. People involved in the gig economy earn income as a freelancer, independent worker or employee. Typically, an online platform is used to connect people with potential or actual customers to provide goods or services. Examples include renting out a home or spare bedroom and providing meal delivery services or rides.

During the pandemic, many people joined the ranks of the gig economy to help make ends meet. Whether you are part of the gig economy because it’s a primary source of income or want to make extra money with a side business, all taxpayers need to understand that they must report gig economy income on their tax return.

Here’s what you should know about the gig economy and your taxes:

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Gig Economy And Your Taxes: Things To Know

What do driving for a ride-sharing company, renting out a room through a rental service, and working for a company that outsources errands and tasks have in common? These are all examples of the gig economy. Just like any other office job, money earned through the gig economy is taxable.

As a gig economy worker, it’s your responsibility to keep track of the money you make and report it on your tax return.

This means if you receive income from a gig economy activity, it’s generally taxable even if you don’t receive a Form 1099-MISC, Form 1099-K, W-2 or other income statement.
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