Tax time is here again. Well, for gig workers, tax time it's constantly around the corner. So here's a few tax tips for gig workers:
Gig Work Tax Tip #1: File Quarterly
Did you know that most tax sites recommend gig workers file quarterly? That means filing every APR15, JUN15, SEP15, and JAN15, otherwise you could pay an average fine of $130.
OK, so pay quarterly...is that it?
Gig Work Tax Tip #2: Use Tax Apps
Get apps to keep track of stuff. MoneyGeek.com has a good article that breaks down a few apps and their highlights. If you only have one hustle, you might be OK keeping all your receipts in your wallet/purse, hoping you don't lose them. But even then, apps are a huge help. Get one. Or two. Or three. Or--you get it.
OK, now that you're keeping track of everything, it's time to make sure you're keeping track of eeeeeeeeeeeeeverything. How do you know if you're keeping track of everything like a good gig worker come tax time?
Gig Work Tax Tip #3: Know the Forms!
Schedule C Tax Form
A Schedule C form tells you all the things you can claim, and therefore, should be keeping track of. EntreCourier.com has a helpful article that breaks down myths and explains some of the finer points of the Schedule C form.
But depending on how much money you make, and whether or not you use apps, you might get a:
1099-K Tax Form
As I mentioned, this is if you used an app for at least 200 transactions AND made at least $20,000. But this form SHOULD BE PROVIDED by the platform and their payment processor, according to the good folks at GoShare.co.
But there's another form. Of course, right?!? We're talking about my favorite...your favorite...give it up for the...
1099-MISC Tax Form
At CPA Practice Advisor (.com), they strongly recommend using the 1099-MISC for EVERY job that makes over $600. And that's not the only good advice they toss around for free. If you, dear gig worker, use your vehicle for business at least 50% of the time, you could qualify for a (up to $25,000) business equipment tax deduction, which "applies to passenger (non-industrial) vehicles that seat up to six and weigh less than 14,000 pounds – which may benefit many rideshare drivers."
Gig Work Tax Tip #4: Get a Real Set of Eyes
It's always a good idea to have a real, trained, human being take a look at things. They can often find something you missed, and also save you a little cashola on the back end! (And correct any bad info you might've heard on some other blog... *wink*)
Before You Go...
Christopher Tallon writes, podcasts, and…wait a second. Are you actually reading this? High five! Follow me here: