Take Control of your tax accounts
M.A.K.S. 2.0
Expert training & tax consulting for small business who is required to file a 1040 Schedule C.
Why Choose Business Training with MAKS?
WHAT IS ACCOUNT KEEPING?
Account Keeping is defined as tax accounting software called M.A.K.S. Monthly Account Keeping System.
Tax accounting is a specialized area of accounting that focuses on the preparation, analysis, and presentation of tax-related information to determine how much tax is owed by individuals or businesses. It ensures compliance with tax laws and regulations while aiming to minimize tax liability.
Gig work vs Independent work?
1040 Schedule C
https://www.irs.gov/forms-pubs/about-schedule-c-form-1040
Use Schedule C (Form 1040) to report income or loss from a business you operated as Independent contractor or a profession you practiced as a sole proprietor.
An activity qualifies as a business if:
- Your primary purpose for engaging in the activity is for income or profit.
- You are involved in the activity with continuity and regularity.
Reporting Gig or Self Employed Income
You report gig income using Form 1040, and if you're self-employed, you'll also need to complete Schedule C to report your business income and expenses. If you earn more than $400 from gig work, you must also file Schedule SE for self-employment.
What is Gig Work?
https://www.irs.gov/businesses/gig-economy-tax-center
Gig work is certain activity you do to earn income, often through an app or website (digital platform), like:
- Drive a car for booked rides or deliveries
- Rent out property or part of it
- Run errands or complete tasks
- Sell goods online
- Rent equipment
- Provide creative or professional services
- Provide other temporary, on-demand or freelance work
Note: This list does not include all types of gig work.
Gig Economy
https://www.irs.gov/businesses/gig-economy-tax-center
The gig economy—also called sharing economy or access economy—is activity where people earn income providing on-demand work, services or goods. Often, it’s through a digital platform like an app or website.
Gig Approach
https://www.irs.gov/businesses/gig-economy-tax-center
Gig economy income is taxable
You must report income earned from the gig economy on a tax return, even if the income is:
- From part-time, temporary or side work
- Not reported on an information return form — like a Form 1099-K, 1099-MISC, 1099-NEC, W-2 or other income statement
- Paid in any form, including cash, property, goods, or virtual currency
What are digital platforms?
https://www.irs.gov/businesses/gig-economy-tax-center
Digital platforms are businesses that match workers' services or goods with customers via apps or websites. This includes businesses that provide access to:
- Ridesharing services
- Delivery services
- Crafts and handmade item marketplaces
- On-demand labor and repair services
- Property and space rentals
Note: This list does not include all types of digital platforms.