IRS Launches Gig Economy Tax Center Just in Time for Tax Season
As the popularity of the gig economy continues to grow at a substantial rate, the IRS has launched a gig economy tax center to help freelancers know how to plan for their tax obligations.
IRS Commissioner Chuck Rettig is quoted in the issue number IR-2020-04 as saying, “The IRS developed this online center to help taxpayers in this emerging segment of the economy. Whether renting out a spare bedroom or providing car rides, we want people to understand the rules so they can stay compliant with their taxes and avoid surprises down the line.”
The tax center’s goal is to streamline the various resources a freelancer may need to forecast their tax obligations in one central location effectively and offers information on:
- filing requirements
- making quarterly estimated income tax payments
- paying self-employment taxes
- paying FICA, Medicare, and Additional Medicare
- deductible business expenses
- special rules for reporting vacation home rentals
If you're a business leader that uses or has used freelancers, contractors, gig workers, etc. you can provide great value to your workers by sharing this information.
Gig workers are encouraged to visit the Gig Economy Tax Center on IRS.gov and get started on their forecast today.
Learn more about the gig economy and your taxes in this free guide, "Gig Economy and Your Taxes: Things to Know."