The sharing, or gig, economy allows individuals and groups to use technology advancements to arrange transactions that generate revenue from their assets, such as cars and homes, or from services they provide, such as household chores, delivery, or technology services. Participants in the gig economy are basically entrepreneurs starting their own business, some perhaps for the first time in their lives.
Participants engaged in the gig economy are likely to face tax issues that they have not had to deal with in the past: separating personal activities from business activities, keeping accurate tax records, paying estimated taxes, paying self-employment taxes, dealing with the rules for a home office, perhaps having to issue tax forms for business payments made, and dealing with similar issues at the state level.
A new Wolters Kluwer tax briefing examines the tax implications for this short-term work, and what participants need to know when it comes time to file taxes. Download the new briefing, “Sharing (Gig) Economy”