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Taxes in the Gig Economy

What is the Gig Economy?

The gig economy—also called sharing economy or access economy—is an 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 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 Form 1099-K, 1099-MISC, W-2, or another income statement.

  • Paid in any form, including cash, property, goods, or virtual currency

What is Gig Work?

Gig work is an 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.

What to Do

Here's how to manage taxes for gig work as an independent contractor (self-employed):

Use the tab to go to the next focusable element * Keep Records * Pay Estimated Tax * Get Ready to File * File Your Tax Return

Estimated Tax Due Dates Pay quarterly estimated tax by the due dates to avoid a penalty:

  • April 15

  • June 15

  • September 15

  • January 15

Note: If the due date falls on a Saturday, Sunday, or legal holiday, payment is due the next business day. Make a Payment

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