CNJ+ January 2025

CHILD, ADOLESCENT & ADULT PSYCHIATRIST TAXPAYERS MUST REPORT GIG ECONOMY EARNINGS WHEN FILING TAXES

A Gig worker is a person who does temporary or freelance work, especially an independent contractor engaged on an informal or on-demand basis. Whether it’s a full-time job or just a side hustle, taxpayers must report gig economy earn ings on their tax return. Understanding how gig work can affect taxes may sound complicated but, it doesn’t have to be. The IRS offers several resources to help gig economy taxpay ers properly fulfill their tax responsibilities. Here are some things gig workers should keep in mind. Gig work is taxable: • Earnings from gig economy work is taxable, regardless of

INDIVIDUALIZED CARE EXTENDED SESSIONS DOUBLE BOARD CERTIFIED This means the business, or the platform, must de termine whether the individual providing the services is an employee or independent contractor. • Taxpayers can use the worker classification page on IRS.gov to see how they are classified. • Independent contractors may be able to deduct busi ness expenses, depending on tax limits and rules. It is im portant for taxpayers to keep records of their business ex penses. Pay the right amount of taxes throughout the year: • An employer typically withholds income taxes from •

whether an individual receives information returns. The reporting require ment 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. 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. Check worker classification: • While providing gig economy services, it is important that the taxpayer is correctly classified.

609.245.8550 WWW.GSINGHMD.COM ◊ Submit a new From W-4 to their employer to have more income taxes withheld from their paycheck, if they have another job as an employee. ◊ Make quarterly estimated tax payments to help pay their income taxes throughout the year, including self-employment tax. The Gig Economy Tax Center on IRS.gov answers questions and helps gig economy taxpayers understand their tax responsibilities. Appointments in Freehold & Monroe Twp. their employees’ pay to help cover income taxes their employees owe. • Gig economy workers who are not considered employees have two ways to cover their income taxes:

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CNJ+ | FORMERLY THE MILLSTONE TIMES

JANUARY 2025