Hi, I’m Patrick, and I work for the IRS.
So, your sister turned her social media passion into a paying gig, creating social media sites for local businesses.
Meanwhile, your best friends are using their cars for a few hours to pick up passengers and make some extra money.
And your neighbor’s kids are away at college, so they rent their spare rooms out to travelers.
What do they all have in common?
They are participating in the sharing economy, also called the gig, on-demand, or access economy.
With the help of online platforms or mobile apps, people find short-term jobs covering a wide variety of skills.
And more and more people use their cars and their spare time to pick up passengers or rent their spare rooms out.
If you use your car or house through a mobile app or online platform, or you find jobs that way, you need to keep in mind the tax implications.
The IRS has set up special information to help you navigate your tax responsibilities in these emerging areas.
Keep in mind, if you receive income from a sharing economy activity, it’s generally taxable.
On the other hand, some of your business expenses may be deductible.
So if you’ve joined the sharing economy, head over to the sharing economy tax center at IRS.gov to see what tax issues may affect you.
For instance, should you pay estimated taxes?
Are you an employee or independent contractor?
And what forms do you need to file?
Know the tax rules, so you’re ready come tax time.
Learn more at irs.gov/sharing economy.