The end of the year isn’t that far off. Gig workers… have you kept record of all, business expenses?
A gig job, is a job where income is received from temporary employment…. some examples would be working on digital platforms, musicians, Uber/Lyft/Taxi drivers,… essentially an Independent Contractor. Gig workers usually earn income from temporary jobs or projects, often through digital platforms, like an app or website. They can include musicians, writers, tradespeople, consultants, ride-
hailing drivers, and those who provide rental services or goods. According to Forbes, the Harvard Business Review reported that 150 million workers in North America and Western Europe work as independent contractors.
Whether paid in cash or goods, that is income and that must be reported to the state, and Uncle Sam, regardless if a W-2 or 10-99 is issued.
Examples of gig work include:- Driving a car for booked rides or deliveries
Renting out property - Selling goods online
- Providing creative or professional services
According to the IRS, gig workers are generally required to pay:
- Income taxes
- Federal Insurance Contribution Act or Self-employment Contribution Act tax
- Additional Medicare taxes
A couple of tips for filing… keep a good record of receipts, as Independent contractors, you may be able to deduct business expenses. Double check the rules for deducting expenses related to use of things like your car or house. Keep records of business expenses.
You may also consider making quarterly estimated tax payments if your gig work is changing your tax bracket so you’re not hit with a whopper of a bill come tax day.Choose online filing and direct deposit for fast and accurate transactions. When submitting your tax return, make sure your current mailing address is included, even if you’re choosing direct deposit for your refund.