Image

2:58 AM / Thursday February 20, 2020

23 Jan 2020

IRS helps workers, businesses with new Gig Economy Tax Center

  • Facebook
  • Twitter
January 23, 2020 Category: Color Of Money Posted by:

WASHINGTON — The Internal Revenue Service recently launched a new Gig Economy Tax Center on IRS.gov to help people in this growing area meet their tax obligations through more streamlined information.

Image

“The IRS developed this online center to help taxpayers in this emerging segment of the economy,” said IRS Commissioner Chuck Rettig. “Whether renting out a spare bedroom or providing car rides, we want people to understand the rules so they can stay compliant with their taxes and avoid surprises down the line.”

The gig economy is also known as the sharing, on-demand or access economy. It usually includes businesses that operate an app or website to connect people to provide services to customers. While there are many types of gig economy businesses, ride-sharing and home rentals are two of the most popular.

Educating gig economy workers about their tax obligations is vital because many don’t receive form W-2s, 1099s or other information returns for their work in the gig economy. However, income from these sources is generally taxable, regardless of whether workers receive information returns.

This is true even if the work is full time, part-time or if the person is paid in cash. Workers may also be required to make quarterly estimated income tax payments, pay their share of Federal Insurance Contribution (FICA), Medicare and Additional Medicare taxes if they are employees and pay self-employment taxes if they are not considered to be employees.

The Gig Economy Tax Center streamlines various resources, making it easier for taxpayers to find information about the tax implications for the companies that provide the services and the individuals who perform them.

It offers tips and resources on a variety of topics including:

  • filing requirements
  • making quarterly estimated income tax payments
  • paying self-employment taxes
  • paying FICA, Medicare and Additional Medicare
  • deductible business expenses
  • special rules for reporting vacation home rentals

For more information, check out the new Gig Economy Tax Center on IRS.gov.

  • Facebook
  • Twitter

Leave a Comment

Recent News

Commentary

Black History Month and telling the (whole) story

February 14, 2020

Tweet Share Pin Email By Paul Robeson Ford  baptistnews.com At least we get an extra day this...

Diaspora

Ladysmith Black Mambazo founder Joseph Shabalala dies at 78

February 14, 2020

Tweet Share Pin Email By Mogomotsi Magome ASSOCIATED PRESS  JOHANNESBURG  — The founder of the South African...

Oasis

72% of U.S. pastors concerned about ‘watered-down gospel’

February 14, 2020

Tweet Share Pin Email By Stephanie Martin  churchnews.com In a new study that kicks off its “State...

Entertainment

Director Tom McCarthy and lead actor Winslow Fegley discuss ‘Timmy Failure: Mistakes Were Made’

February 16, 2020

Tweet Share Pin Email By Kharisma McIlwaine  The new Disney Plus film “Timmy Failure: Mistakes Were Made”...

Sun Report

A victory, a caution: Takeaways from New Hampshire’s primary

February 14, 2020

Tweet Share Pin Email ABOVE PHOTO: Democratic presidential candidate Sen. Bernie Sanders, I-Vt., greets supporters at a...

Horoscopes

SUNscopes for the week of Feb. 16

February 14, 2020

Tweet Share Pin Email All Signs: This week the two celestial bodies that most affect our energy...

The Philadelphia Sunday Sun Staff