Gig work is temporary, on-demand, or freelance work that is done in return for income. Some examples of gig work include:
- Driving to provide rides or deliveries to people (Uber, Lyft, DoorDash, GrubHub, etc.)
- Online selling (Etsy, Shopify, Poshmark, etc.)
- Renting out rooms, houses, or other properties (AirBNB, etc.)
- Providing creative or professional services to people (graphic design, video editing, commissioned art, etc.)
- Doing tasks for people (lawn care/landscaping, maintenance, etc.)
This is not an exhaustive list. There are many different types of gig work not mentioned above.
Some people may not be aware that income from gig work is taxable. You must report your income, even if you do not receive a W2, 1099, or other income statement. You must also report your income even if it comes in the form of cash, digital currency, or even goods or services. It is essential that you keep good records and receipts of your income and expenses related to the gig work you do throughout the year.
You may have to pay quarterly estimated taxes (four times per year) if taxes are not already being withheld by your employer. You can pay these online, by mail, or by phone. The IRS has forms available to help you estimate your taxes and we would be happy to have a discussion with you about potential tax impacts of gig work.
If you have any tax related questions, please contact us. We'd be happy to help!