The IRS is Coming For the Gig Economy with a $600 Threshold for the 1099-K!

They coming to get ya!

The Devil is loose and starting in January 2023 the IRS aka Uncle Sam aka the Tax Man is about to get you hustlers, freelancers, or whatever you call yourself! Before I go on let me say this.

  • Earnings from gig economy work is taxable, regardless of whether an individual receives information returns (1099-K). The reporting requirement for issuance of Form 1099-K changed for payments received in 2022 to totals exceeding $600, regardless of the total number of transactions. This means some gig workers will now receive an information return (1099-K). This is true even if the work is full-time, part-time or if an individual is paid in cash.
  • Gig workers may also be required to make quarterly estimated income tax payments and pay their share of Social Security and Medicare taxes.”

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