New Gig Economy

New Gig Economy

What is the Gig Economy?

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 Economy Income is Taxable

You must file a tax return if you have net earnings from self-employment of $400 or more from gig work, even if it’s a side job, part-time or temporary.

You must pay tax on income you earn from gig work. If you do gig work as an employee, your employer should withhold tax from your paycheck. If you do gig work as an independent contractor, you may have to pay estimated taxes. Unsure if you are an employee or independent contractor? Ask your employer or check your worker status.

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, W-2 or other income statement
  • Paid in any form, including cash, property, goods, or virtual currency

What is Gig Work?

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.

What are Digital Platforms?

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.

Manage Taxes for gig work as an independent contractor (self-employed)