Gig economy Industry

Overview

If you use any of the online platform applications available to:

  • Rent a house
  • Provide car rides
  • Connect and provide other goods or services

This is the gig economy, also known as the shared, digital, or peer-to-peer economy.

Gig income and taxes

If you receive income from a gig economy activity, it’s generally taxable, even if you do not receive a tax form:

This is true even if:

  • It’s a side job
  • It’s a part-time business
  • You are paid in cash

All income from gig-related goods and services is taxable, whether you get a tax form from the platform or business.

If you are unsure of your worker classification, refer to Worker classification and AB 5 frequently asked questions.

Estimated taxes

If you are an independent contractor making money from gig work you are considered self-employed. You may be required to make estimated tax payments. Avoid a penalty by making your payments on time.

Keeping good records

Some or all of your business expenses may be deductible (subject to the normal tax limitations and rules). Keeping good records of your business expenses will help you to claim the business expense deductions that you are entitled.

Visit Business Expenses (FTB 984) for more information.

What form to file

Most independent contractors report their gig income on:

  • IRS Schedule C, and
  • FTB Form 540

If you operate a business entity, visit Business filing information for what form you should file based on your business type.

How to pay

Visit Payment options.

Resources