GIG ECONOMY INCOME IS REPORTABLE TO IRS
March 13, 2022 - Douglas Myser
Gig economy income is reportable to IRS. The Internal Revenue Service in public announcement IR-2022-45, announced that and reminded taxpayers that gig economy income, virtual transactions, and foreign source income and assets are taxable assets and income reportable to the IRS. They stated that you may obtain information on the IRS website, IRS.GOV for more information on each of these three categories, and how to report them on your tax forms. gig economy income is reportable to IRS.
Income income from the gig economy is taxable and must be reported to the IRS. The gig economy is activity where people earn income providing on demand work, services or goods. Often, it's through a digital platform like an app or website. Taxpayers must report income earned from the gig economy on a tax return, even if the income is from part time work, not reported on an information return form, like a 1099-K, 1099-MISC, W-2, or other tax statement or, paid in any form of cash, or property goods or virtual currency.
The IRS is reminding taxpayers that a question at the top of form 1040 and 1040-SR asks about virtual currency transactions. All taxpayers filing these forms must check the box indicating either "yes" or "no". A transaction involving virtual currency includes, the receipt of virtual currency as payment for goods or services, or the transfer of virtual currency, the receipt of virtual currency due to mining and staking activities, the result of virtual currency as a result of a hard fork, a sale of virtual currency. Any other disposition of a financial interest in virtual currency in any manner. Ignoring these on tax forms will cause potential IRS issues and problems.
Given the Biden Administrations Executive Order the week of March 8th, 2022, its clear the United States is moving towards regulating virtual currency, taxing it, and potentially developing a national virtual currency, like China has already done.