IRS Offers Tools That Gig Economy Employees Can Use to Pay Taxes

IRS Offers Tools That Gig Economy Employees Can Use to Pay Taxes

The IRS developed this online center to help taxpayers in this emerging industry. Whether you’re renting a guest room or offering car rides, we want people to understand the rules so they can keep their taxes and avoid surprises across the board.

The gig economy is also known as the sharing, on-demand or access economy. This usually includes companies that run an app or website to connect people and provide services to customers.

Educating gig economy workers about their tax obligations is critical, as many do not get any other information about their work in the gig economy. However, income from these sources is generally taxable regardless of whether employees receive information declarations. This also applies if the work is full-time or part-time or if the person is paid in cash. Employees may also have to make estimated income tax payments on a quarterly basis.
The Gig Economy Tax Center optimizes various resources and makes it easier for taxpayers to find information about the tax implications for the companies that provide the services and the people who provide them.

It offers tips and resources on various topics, including:

  • filing requirements
  • make estimated income tax payments on a quarterly basis
  • Pay taxes on self-employment
  • Pay, Medicare and additional Medicare
  • deductible business expenses
  • Special rules for reporting vacation rentals