There are some essential tips to remember if you work as a gig worker:
All income is taxable, regardless of whether you receive information returns, including full-time and part-time work and those paid in cash.
As a gig worker, your classification is as an employee or an independent contractor; this can depend on where you live, even for the same services.
Lastly, it’s important to remember to pay the correct taxes on this income throughout the year to manage owing additional taxes when you file. Because gig employees don’t have an employer withholding taxes from their paychecks, they can either submit a new W-4 and have their employer withhold more from their pay (if they have another job as an employee) or make quarterly estimated tax payments throughout the year.
*This information is not intended to substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS.gov8
Footnotes and Sources
- IRS.gov, January 31, 2023