Understanding Your Gig Income

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Report Your Business Income

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.

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File Your Gig 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. 

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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

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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.