Taxpayers must report gig economy income on their tax return
In 2020, many people joined the Gig economy to help make ends meet during the pandemic. People involved in the Gig economy earn income as a freelancer, independent worker or employee. They use technology known as online platforms to connect them with customers to provide goods or services.
Things taxpayers should know about the Gig economy and taxes:
Money earned through this work is usually taxable;
There are tax implications for both the company providing the platform and the individual performing the services;
This income is usually taxable even if the:
Taxpayer providing the service doesn't receive an information return, like a Form 1099-NEC, Form 1099-MISC, Form 1099-K, or Form W-2;
Activity is only part-time or side work;
Taxpayer is paid in cash.
Source: IRS
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