04 Apr All income is reportable
All income is taxable, including gig economy and tip income
The IRS informs us that it’s important for taxpayers to file a federal tax return that has a complete and correct reporting of their income – which may mean including income from sources other than regular wages from an employer. Income from gig economy activities and tip income are two common sources of such income.
Gig economy earnings are taxable
The gig economy is activity where people earn income providing on-demand work, services, or goods, such as selling goods online, driving a car for deliveries or renting out property. This income is often received 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, temporary, or side work.
- Paid in any form, including cash, property, goods, or digital assets.
- Not reported on an information return form like a Form 1099-K, 1099-MISC, W-2 or other income statement.