Bookmark and Share [ [link removed] ]
a { color:#0073AF !important;} a:hover { color:#004673 !important;}
IRS.gov Banner
IRS Tax Tips June 27, 2022
Useful Links:
IRS.gov [ [link removed] ]
Help For Hurricane Victims [ [link removed] ]
________________________________________________________________________
News Essentials
What's Hot [ [link removed] ]
News Releases [ [link removed] ]
IRS - The Basics [ [link removed] ]
IRS Guidance [ [link removed] ]
Media Contacts [ [link removed] ]
Facts & Figures [ [link removed] ]
Around The Nation [ [link removed] ]
e-News Subscriptions [ [link removed] ]
________________________________________________________________________
The Newsroom Topics
Multimedia?Center [ [link removed] ]
Noticias en Espa?ol [ [link removed] ]
Radio PSAs [ [link removed] ]
Tax Scams/Consumer Alerts [ [link removed] ]
The Tax Gap [ [link removed] ]
Fact?Sheets [ [link removed] ]
IRS Tax Tips [ [link removed] ]
Armed Forces [ [link removed] ]
Latest News [ [link removed] ]
________________________________________________________________________
IRS Resources
Compliance & Enforcement News [ [link removed] ]
Contact?Your Local IRS?Office [ [link removed] ]
Filing Your Taxes [ [link removed] ]
Forms & Instructions [ [link removed] ]
Frequently Asked Questions [ [link removed] ]
Taxpayer Advocate Service [ [link removed] ]
Where to File [ [link removed] ]
IRS Social Media [ [link removed] ]
?
________________________________________________________________________
Issue Number:? Tax Tip 2022-97
________________________________________________________________________
*Here are some things gig economy workers should know about their tax responsibilities*
Many people take up gig work on a part-time or full-time basis, often through a digital platform like an app or website. Gig work, such driving a car for booked rides, selling goods online, renting out property, or providing other on-demand work, is taxable and must be reported as income on the worker?s tax return.
Here are some things gig workers should know to stay on top of their tax responsibilities:
*Gig work is taxable:*
* Earnings from gig economy work is taxable, regardless of whether an individual receives information returns. The reporting requirement [ [link removed] ] for issuance of Form 1099-K changed for payments received in 2022 to totals exceeding $600, regardless of the total number of transactions. This means some gig workers will now receive an information return. This is true even if the work is full-time or part-time.
* Gig workers may be required to make quarterly estimated tax payments [ [link removed] ].
* If they are self-employed, gig workers must pay all their Social Security and Medicare taxes on their income from the gig activity
*Proper worker classification:*
While providing gig economy services, it is important that the taxpayer is correctly classified.
* This means the business, or the platform, must determine whether the individual providing the services is an employee or independent contractor.
* Taxpayers can use the worker classification [ [link removed] ] page on IRS.gov to see how they should be classified.
* Independent contractors may be able to deduct business expenses, depending on tax limits and rules. It is important for taxpayers to keep records of their business expenses.
*Paying the right amount of taxes throughout the year:*
* An employer typically withholds income taxes from their employees' pay to help cover income taxes their employees owe.
* Gig economy workers who aren?t considered employees have two ways to cover their income taxes:
* Submit a new Form W-4 to their employer to have more income taxes withheld from their paycheck if they have another job as an employee.
* Make quarterly estimated tax payments [ [link removed] ] to help pay their income taxes throughout the year, including self-employment tax.
The Gig Economy Tax Center [ [link removed] ] on IRS.gov answers questions and helps gig economy taxpayers understand their tax responsibilities.
*More information:*
Publication 5369, Gig Economy and your taxes: things to know [ [link removed] ]
Publication 1779, Independent Contractor or Employee [ [link removed] ]
Is My Residential Rental Income Taxable and/or Are My Expenses Deductible? [ [link removed] ]
Share this tip on social media -- #IRSTaxTip: Here are some things gig economy workers should know about their tax responsibilities. [link removed] [ [link removed] ]
Back to top [ #top ]
?
________________________________________________________________________
FaceBook Logo [ [link removed] ]??YouTube Logo [ [link removed] ] ?Instagram Logo [ [link removed] ]? Twitter Logo [ [link removed] ] ?LinkedIn Logo [ [link removed] ]
________________________________________________________________________
Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov [ [link removed] ].
This message was distributed automatically from the IRS Tax Tips mailing list. *Please Do Not Reply To This Message.*
?
________________________________________________________________________
Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page [ [link removed] ]. You will need to use your email address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com [ [link removed] ].
This service is provided to you at no charge by the Internal Revenue Service (IRS) [ [link removed] ].
body .abe-column-block {min-height: 5px;} ________________________________________________________________________
This email was sent to
[email protected] by: Internal Revenue Service (IRS) ? Internal Revenue Service ? 1111 Constitution Ave. N.W. ? Washington DC 20535 GovDelivery logo [ [link removed] ]
