Gig economy Industry
What is the gig economy?
If you use any of the online platform applications available to:
- rent a house
- provide car rides
- connect and provide a number of other goods or services
This is called the gig economy, also known as the shared, digital, or peer-to-peer economy. Gig economy activity is generally taxable.
Is income from gig work taxable?
If you receive income from a gig economy activity, it’s generally taxable, even if you don’t receive a Form 1099-K, 1099-MISC, Form W-2, or some other income statement. This is true even if:
- It’s a side job
- It’s a part-time business
- You are paid in cash
Some or all of your business expenses may be deductible (subject to the normal tax limitations and rules). We encourage taxpayers participating in the gig economy to understand the potential tax issues affecting them.