Whether it’s for the independence, flexible schedules, or the opportunity to do what you love, many of us have gone out on our own as part of the new “gig economy.”
We often think of freelancers as people who are writers, graphic designers, or software coders who work from the local coffee shop. But in our increasingly connected world, the gig economy also includes driving a car for Uber, renting out your basement as an Airbnb, or selling crafts on Etsy. Any income you earn- even from a side business – needs to be reported to the IRS. So they’ve created a webpage specifically targeted toward the unique challenges of freelancers.
From https://www.irs.gov/businesses/gig-economy-tax-center, you can find information on what records you need to keep, learn how to pay your estimated taxes, and how to file your tax return. If your business has employees, you can also learn how to classify employees, pay payroll taxes, and report wages appropriately.
Being self-employed can bring many rewards. Just be sure to account for them.