THE TRANSATLANTIC MAGAZINE
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Work between the Taxpayer Advocate Service and the IRS has culminated in updated information being published for US Taxpayers who work as part of the Gig Economy.
The Gig Economy, described by the IRS as "activity where people earn income providing on-demand work, services or goods", has noticably grown in the last few years on both sides of the Pond. A white paper study published by Mastercard in May 2019 projects that the income from the global Gig Economy will grow to $455 billion in 2023, a figure which would mark a rise of over $200 billion from 2018.
The IRS offer a non-exhaustive list of what kind of work would come under the definition of the Gig Economy, including "Drive a car for booked rides or deliveries; Rent out property or part of it; Run errands or complete tasks; Sell goods online; Rent equipment; Provide creative or professional services; Provide other temporary, on-demand or freelance work".
The new 'Gig Economy Tax Center' web page on the IRS website explains that income from the Gig Economy should be reported when completing your US Tax return. As such, the web page offers a useful selection of information to help understand how you, or your US Tax Preparer, can factor in income from such work going forward.
You can view the 'Gig Economy Tax Center' page by going to https://www.irs.gov/businesses/gig-economy-tax-center