The IRS reminds gig workers that their earnings are taxable income.
WASHINGTON — The Internal Revenue Service reminds taxpayers of their reporting and potential tax obligations on income from the gig economy and service industry, transactions from digital assets, and foreign sources or holding certain foreign assets.
Information available on IRS.gov and Instructions for Form 1040 and Form 1040-SR can help taxpayers understand and meet these reporting and tax requirements.
Gig economy earnings are taxable
Generally, income earned from the gig economy is taxable and must be reported to the IRS on tax returns.
The gig economy is activity where people earn income providing on-demand work, services or goods, such as selling goods online, driving a car for deliveries or renting out property. Often, it’s through a digital platform like an app or website.
Taxpayers must report income earned from the gig economy on a tax return, even if the income is:
- From part-time, temporary or side work.
- Paid in any form, including cash, property, goods or digital assets
- Not reported on an information return form like a Form 1099-K, 1099-MISC, W-2 or other income statement.
For more information on the gig economy, visit the gig economy tax center.
Read the full story at Tax Time Guide: IRS reminder to report all income; gig economy and service industry, digital or foreign assets and sources | Internal Revenue Service
