Gig workers, whether individuals or businesses, offer on-demand services for companies. Gig companies are required to provide a 1099 form to gig workers and to the IRS at the end of the year, ensuring proper documentation and compliance with income tax regulations.
Income from the gig economy needs to be reported on taxes, regardless of whether it is:
Request and collect taxpayer identification number and other details from gig workers through W-9 or W-8 forms to verify TIN, name, address, etc.
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Reports payments made to gig workers for work provided. This is mandatory if the total payment for the respective tax year reaches $600 or more or if there was any withholding on payments to the worker.
Reports miscellaneous payments (rents, awards, etc.) and is also required if the total payment for the respective tax year amounts to $600 or more or contains withheld amounts.
Reports electronic payment transactions and third-party payment network transactions reporting thresholds are changing each of the next 3 tax years, and you should keep an eye on our blog to see how they progress.
File IRS forms 1099, w2, 940, ACA, and more with Tax1099. We also support state and federal filings.
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