Tax Obligations for Gig Economy Workers
Understanding your tax obligations is an important factor to consider when beginning a new job. Whether you are driving for a ride sharing app or renting out a camper for the holidays, you need to know how to go about fulfilling your income tax obligations.
Earning money in the gig economy usually leaves workers with the responsibility of handling their own tax payments. However, many gigs in the gig economy do not provide workers with the tax documentation necessary for ensuring that income taxes are being paid properly.
The IRS has launched the new IRS Gig Economy Tax Center to provide answers to questions regarding tax obligations of a gig economy worker. Some topics discussed there include making quarterly estimated income tax payments; paying self-employment taxes; deductible business expenses; and special rules for reporting vacation home rentals. To learn more about the IRS Gig Economy Tax Center, see the IRS press release here or visit the center directly here.