IRS New Economy Tax Center; The Internal Revenue Service (IRS) launched a brand new Gig Economy Tax Center on its official website. The purpose to launch new IRS Gig Economy Tax Center is to help taxpayers to meet their tax obligations through more streamlined and updated information, particularly in this developing ground.
The IRS Commissioner, Mr. Chuck Rettig, shared his thoughts on the launching of online IRS Gig Economy Tax Center and said,
The IRS developed this online center to help taxpayers in this emerging segment of the economy. Whether renting out a spare bedroom or providing car rides, we want people to understand the rules so they can stay compliant with their taxes and avoid surprises down the line.
What Is Gig Economy Business In USA?
- The sharing, on-demand or access economy are some of the other names for the gig economy in the United States.
- Those businesses are included in U.S. gig economy that operates website or app for connecting people to present services to their customers.
- There are two most popular types of gig economy businesses in USA that include ride-sharing and home rentals.
Importance of Gig Economy Tax Center:
- It is very necessary to educate gig economy workers regarding their tax obligations as most of them do not receive Form 1099s, Form W-2s, etc. even, they are not aware of other related information returns for their work in the gig economy sector.
- Despite of whether workers receive information returns or not, income from these sources is normally taxable. Furthermore, both fulltime and part-time work income is taxable. Even if the person is paid in cash, his income is taxable.
- It is also necessary for the gig economy workers to file their quarterly estimated income tax payments to the IRS.
- Along with it, they are also obliged to pay their Federal Insurance Contribution (FICA), Medicare and Additional Medicare taxes if they are employees. Even if they are not considered to be employees but pay self-employment taxes, the same is true for them.
Features of IRS Online Gig Economy Tax Center:
Various resources are streamlined by the IRS online Gig Economy Tax Center on IRS.gov. The functions of Gig Economy Tax Center make it easier for the taxpayers to gather complete information regarding the tax implications for the companies that offer the services as well as the individuals who perform them. Other functions and features of IRS online Gig Economy Tax Center are to offer tips and resources on the following topics:
- Requirements for returns filing.
- Procedure to file and make quarterly estimated income tax payments.
- Payment of self-employment taxes.
- To pay FICA, Medicare and Additional Medicare.
- Details of deductible business expenses.
- Specific regulations to report vacation home rentals.