{"id":341,"date":"2020-02-05T16:16:18","date_gmt":"2020-02-05T16:16:18","guid":{"rendered":"http:\/\/www.danaleecpa.com\/blog\/?p=341"},"modified":"2020-02-05T16:16:20","modified_gmt":"2020-02-05T16:16:20","slug":"gig-work-economy","status":"publish","type":"post","link":"https:\/\/www.danaleecpa.com\/blog\/gig-work-economy\/","title":{"rendered":"Gig Work Economy"},"content":{"rendered":"\n<p>IRS announced in IR-2020-4 that it launched the<a href=\"https:\/\/www.irs.gov\/businesses\/gig-economy-tax-center\"> Gig Economy Tax Cente<\/a>r on its website. The Center provides guidance for the people who earn income providing on-demand work, services or goods, often times though an app or  website or other type of digital platform.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Example Of Gig Work<\/h2>\n\n\n\n<p>The most popular gig economy businesses are home rentals and ride-sharing, but there are many other types and the IRS website gives several examples (this list is not all inclusive): <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Drive\u00a0a car for booked rides or deliveries<\/li><li>Rent out property or part of it<\/li><li>Run errands or complete tasks<\/li><li>Sell goods online<\/li><li>Rent equipment<\/li><li>Provide creative or professional services<\/li><li>Provide other temporary, on-demand or freelance work<\/li><li><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"> <br>What are Digital Platforms? <\/h2>\n\n\n\n<p>IRS defines digital\u00a0platforms\u00a0as &#8220;businesses that match workers&#8217; services or goods with customers via apps or websites. This includes businesses\u00a0that provide\u00a0access to:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Ridesharing services<\/li><li>Delivery services<\/li><li>Crafts and handmade item marketplaces<\/li><li>On-demand labor and repair services<\/li><li>Property and space rentals<\/li><\/ul>\n\n\n\n<p>with a note that  the above list does not include all types of\u00a0digital platforms. &#8220;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Taxes on Gig Work Income<\/h2>\n\n\n\n<p>You must pay taxes on the income you earn from your gig work, even if you don&#8217;t receive a 1099 form. You must maintain records and receipts during the year for the income and expenses you incur and pay estimated tax quarterly.<\/p>\n\n\n\n<p>If you are self-employed and your earnings are over $400, you must file a tax return. You can reduce your taxes by claiming business expenses, like: supplies, office expenses, mileage, home office deduction, etc.<br>If you do gig work as an employee, your employer should withhold tax from your paycheck. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Other Considerations<\/h2>\n\n\n\n<p>If you sell goods or provide taxable services, you might be subject to state sales tax and you are required to  get a sales tax permit and collect, pay and report sales tax.<\/p>\n\n\n\n<p>In case you use subcontractors that you pay $600 or more during the year you need to file forms 1099-NEC.<\/p>\n\n\n\n<p>And if you have employees you need to file payroll reports.<\/p>\n\n\n\n<p>Let us help you with your tax needs. <a href=\"https:\/\/www.danaleecpa.com\/contact.htm\">Give us a call or schedule an appointment online<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>IRS announced in IR-2020-4 that it launched the Gig Economy Tax Center on its website. The Center provides guidance for the people who earn income providing on-demand work, services or goods, often times though an app or website or other type of digital platform. Example Of Gig Work The most popular gig economy businesses are [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-341","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-uncategorized","7":"entry"},"_links":{"self":[{"href":"https:\/\/www.danaleecpa.com\/blog\/wp-json\/wp\/v2\/posts\/341","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.danaleecpa.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.danaleecpa.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.danaleecpa.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.danaleecpa.com\/blog\/wp-json\/wp\/v2\/comments?post=341"}],"version-history":[{"count":1,"href":"https:\/\/www.danaleecpa.com\/blog\/wp-json\/wp\/v2\/posts\/341\/revisions"}],"predecessor-version":[{"id":342,"href":"https:\/\/www.danaleecpa.com\/blog\/wp-json\/wp\/v2\/posts\/341\/revisions\/342"}],"wp:attachment":[{"href":"https:\/\/www.danaleecpa.com\/blog\/wp-json\/wp\/v2\/media?parent=341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.danaleecpa.com\/blog\/wp-json\/wp\/v2\/categories?post=341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.danaleecpa.com\/blog\/wp-json\/wp\/v2\/tags?post=341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}