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Your Taxes in the Sharing Economy

Your Taxes in the Sharing Economy


HI, I’M RACHEL AND I WORK FOR THE INTERNAL
REVENUE SERVICE. 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/SHARINGECONOMY.

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