Taxation of Gig Economy Income
In the United States, there are approximately 90 companies who are listed as gig businesses and many individuals who operate small businesses that are classified as gig companies. For individuals and small business owners who receive their income by means of third-party vendors, they will begin receiving 1099-K forms from these vendors when the overall annual payment is $600 or more (was $20,000 or more). To some, this may seem like a new taxable income but, it always was taxable. But now, the IRS will be aware of this income because of the 1099-K forms by the vendors with the IRS. So, is this income taxable as an employee, independent contractor, or sole proprietor? In this presentation, the tax reporting issues associated with these workers and casual sellers of tickets to an event are discussed.Areas Covered Who is a gig worker and how are they classified? Reporting requirements of gig worker income Reporting requirements of ticket sellers through third-party vendorsUse of Forms 1099-MISSC, 1099-NEC, and 1099-KThe tax penalties associated with the gig workerWho Should AttendTax preparers, CPAs, Accountants, Financial Planners, Consultants, and Personal AdvisorsWhy Should You Attend If you are a small business consultant or tax preparer with clients receiving money from third-party vendors, you need to be aware of the tax rules associated with employees, independent contractors, and small business owners as part of the gig economy. In addition, if you have clients selling tickets to sporting events and being paid by third-party vendors, these individuals will be receiving 1099-K Forms from the vendors if gross sales are $600 or more.
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In the United States, there are approximately 90 companies who are listed as gig businesses and many individuals who operate small businesses that are classified as gig companies. For individuals and small business owners who receive their income by means of third-party vendors, they will begin receiving 1099-K forms from these vendors when the overall annual payment is $600 or more (was $20,000 or more). To some, this may seem like a new taxable income but, it always was taxable. But now, the IRS will be aware of this income because of the 1099-K forms by the vendors with the IRS. So, is this income taxable as an employee, independent contractor, or sole proprietor? In this presentation, the tax reporting issues associated with these workers and casual sellers of tickets to an event are discussed.
Areas Covered
- Who is a gig worker and how are they classified?
- Reporting requirements of gig worker income
- Reporting requirements of ticket sellers through third-party vendors
- Use of Forms 1099-MISSC, 1099-NEC, and 1099-K
- The tax penalties associated with the gig worker
Who Should Attend
Tax preparers, CPAs, Accountants, Financial Planners, Consultants, and Personal Advisors
Why Should You Attend
If you are a small business consultant or tax preparer with clients receiving money from third-party vendors, you need to be aware of the tax rules associated with employees, independent contractors, and small business owners as part of the gig economy. In addition, if you have clients selling tickets to sporting events and being paid by third-party vendors, these individuals will be receiving 1099-K Forms from the vendors if gross sales are $600 or more.