IRS Launches New Resource Center for Sharing Economy-based Income

By:
Chris Gaetano
Published Date:
Aug 23, 2016
Phone

The IRS has launched a new resource center that deals with how income from sharing economy platforms such as Uber or Airbnb should be treated for tax purposes. Due to the novelty of many of these services, how income from these platforms fits into the tax code is not always clear. Further, many workers who make money through these platforms do not always keep close track of how much they earn, and do not always receive their 1099s, which can complicate tax filings

The resource page reminds people that income from sharing economy activities are generally taxable, even if they 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, said the IRS, even if you do it as a side job or just as a part time business and even if you are paid in cash. It did point out, though, that, depending upon the circumstances, some or all of your business expenses may be deductible, subject to the normal tax limitations and rules.

The page contains links to guidance and forms relevant to workers using sharing economy platforms, such as filing requirements, the difference between employees and independent contractors, self-employment taxes, tax payments, depreciation, rules for home rentals and business expenses. 

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