As an Airbnb host, Lyft driver, or anyone else who earns money from the sharing economy, you’ve probably had tax questions at some point. The IRS now has a site dedicated to answering those questions.
Recently, the IRS launched their “Sharing Economy Tax Center,” a page dedicated to anyone involved in the sharing economy, gig economy, or access economy. Whatever you want to call it, if you rent out a spare bedroom, drive strangers around, or offer any other kind of individual service, you probably owe taxes for the cash you earn. At the same time, you’re probably eligible for certain business deductions. Here’s how the IRS puts it:
if you receive income from a sharing economy activity, it’s generally taxable even if you don’t receive a Form 1099-MISC, Miscellaneous Income, Form 1099-K, Payment Card and Third Party Network Transactions, Form W-2, Wage and Tax Statement, or some other income statement. This is true even if you do it as a side job or just as a part time business and even if you are paid in cash. On the other hand, depending upon the circumstances, some or all of your business expenses may be deductible, subject to the normal tax limitations and rules.
Their new site includes a handful of information that these taxpayers should get started with, as well as answers to common issues and questions. It also includes forms you’ll need for filing. Check out the Sharing Economy Tax Center at the link below.
Sharing Economy Tax Center
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