Tax Challenges of the Gig Economy

We know all too well the tax challenges that Independent Contractors can face, so when we saw this great article about recent tax changes (and the lack thereof) on theconversation.com, we immediately thought of our partners.
 
The author, Caroline Bruckner, has testified before the IRS and congressional committees on the issue of gig workers’ taxes. She explains thoroughly and simply some of the common problems that Independent Contractors and gig workers can face because of the current tax code, especially individuals who don’t meet the earning threshold to receive a 1099 from the businesses they partner with:

 

“Anyone who doesn’t get forms indicating how much taxable income they earned risks underpayingIRS data show that 63 percent of the taxpayers who are not subject to withholding by their employers or don’t get 1099s misreport income, often unintentionally.

When quarterly or annual errors surface, unsuspecting delinquent taxpayers may incur penalties and owe interest. They also miss out on claiming the deductions and credits they may have otherwise been entitled to, which would have cut their tax bill. Often, taxpayers may not realize that they owe taxes on income for work that doesn’t generate any IRS paperwork.”

 
Unlike other companies, Delivery Drivers Inc. keeps a record of all drivers’ earnings no matter what amount they made during the year. We are here to help you with any questions that come up during tax season, and we can even set aside some of your income for taxes throughout the year!

If you are an independent contractor, we highly recommend that you read the full article on The Conversation here: https://theconversation.com/congress-failed-to-fix-tax-woes-for-gig-workers-90522

If you’re interested in becoming a partner with DDI, please contact: 888-334-9675 ext. 0 or you can email us at operations@ddiwork.com. For more information or online registration, simply go to: https://ddiwork.com/drivers/sign-up/