GameChangers_BusinessIssue Volume 5 Issue 25 | Page 38

GAME CHANGERS MAGAZINE | 38

Gig economy jobs turn workers into small business owners

As a business owner what can they expect to see with the changes in filing taxes and write offs etc , this year ?
There are no new laws ; the only changes are coming from the new tax code that was implemented last year .
What are some of the loopholes people should look for filing their taxes this year ?

Gig economy jobs have boomed in recent years and even more so since the onset of the coronavirus pandemic . Many people found different employment in 2020 , including jobs in the gig economy . With new business opportunities from companies such as Uber , Airbnb , and DoorDash , taxpayers are finding it easier than ever before to work for themselves . As workers take on these new jobs , they ’ re probably not thinking of what the gig economy means for their taxes . Gig-economy workers generally do not have taxes withheld from their pay as salaried workers normally do , however , they must report income earned in the gig economy on their tax return . Many people are surprised that as a gig economy worker , you are considered an independent contractor , which means they actually own a small business in the eyes of the IRS . This is true whether your gig economy job is your primary source of income or your side hustle . The IRS encourages people earning income in the gig economy to consider making quarterly estimated tax payments to stay current with their federal tax obligations .

People should make sure that all documents are complete . If you have health insurance through the Affordable Care Act make sure you have your form 1095 A so the preparer can file with your taxes or they will hold your refund until it is filed .
Make sure that they have all income documents W 2 , 1099 and any other .
Most people received stimulus checks . Unemployment . Government loans , etc .. how would that affect how they file this year due to all that ’ s happened in 2020 with COVID-19 ?
New for business owners that had employees and filed for any covid relief you must have all documentation for your business as it applies to employers and employees .
All covid loans that may be subject to some kind of tax should have all documentation . As of right now we don ’ t have any information as to what they may do because they are still in the phase of creating the rules .