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Home > File > Business and Self-Employed > Small Business and Self-Employed > Manage Taxes for Your Gig Work

Manage Taxes for Your Gig Work
English | Español
Individuals
International Taxpayers
Business and Self-Employed
Small Business and SelfEmployed
Employer ID Numbers
Business Taxes
Reporting Information
Returns
Self-Employed
Starting a Business

You must file a tax return if you earn income from gig economy activities, even if it's a
side job, part-time, or temporary work.
Most gig workers pay self-employment tax. This is because they are considered
independent contractors, not employees. If you are unsure, check your status.

What To Do

Help
•
•
•

Respond to an IRS Notice or
Letter
Understand Your 1099-K
Independent Contractor or
Employee?

Here’s how to manage taxes for your gig work:

∠

Prepare for Filing

∠

Pay Quarterly Estimated Taxes

∠

File an Annual Tax Return

Estimated Tax Due Dates

Operating a Business
Closing a Business

Estimated tax is how you pay tax
since you don’t have an employer
withholding tax for you. You may
have to pay a penalty if you don’t
pay enough tax.
April 15
June 17
September 15
January 15

Industries/Professions
Small Business Events
Online Learning
Large Business

Make a Payment

Corporations

Government Entities

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Project: IRS.gov Phase 1

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Gig Economy Activity Landing Concept — v3

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Forms & Instructions

Home > File > Business and Self-Employed > Small Business and Self-Employed > Manage Taxes for Your Gig Work

Manage Taxes for Your Gig Work
English | Español
Individuals
International Taxpayers
Business and Self-Employed
Small Business and SelfEmployed
Employer ID Numbers

Reporting Information
Returns
Self-Employed
Starting a Business
Operating a Business
Closing a Business
Industries/Professions
Small Business Events

Most gig workers pay self-employment tax. This is because they are considered
independent contractors, not employees. If you are unsure, check your status.

What To Do
Prepare for Filing

•
•
•

Respond to an IRS Notice or
Letter
Understand Your 1099-K
Independent Contractor or
Employee?

Estimated Tax Due Dates

Gather your records — Collect your records and receipts during the year.
Recordkeeping can help you track your income, deduct expenses and complete
your tax return.
NOTE: Many payers do not send form 1099. However, the income your earn is
still taxable. Keep receipts of your income and sales.
Collect income forms - The businesses you work with will probably send a form
to the IRS to report payments made to you. You should receive a copy of the
forms by January 31. Collect any forms you received for your work including:

Online Learning

•

Form 1099-MISC, Miscellaneous Income

Large Business

•

Form 1099-K, Payment Card and Third Party Network Transactions

Corporations

•

Form W-2, Wage and Income Statement

Government Entities

Help

Here’s how to manage taxes for your gig work:

∠

Business Taxes

You must file a tax return if you earn income from gig economy activities, even if it's a
side job, part-time, or temporary work.

Add your deductible expenses — You can reduce your tax liability by deducting
expenses. For more information, see:
•

Publication 463, Travel, Entertainment, Gift, and Car Expenses

•

Publication 535, Business Expenses

•

Publication 587, Business Use of Your Home

See also:
•

Publication 334, Tax Guide for Small Business

•

Publication 583, Starting a Business and Keeping Records

∠

Pay Quarterly Estimated Taxes

Estimated tax is how you pay tax since you don’t have an employer withholding
tax for you. You may owe a penalty if you don’t pay enough tax.
When to pay — Estimated tax payments are due in four quarterly installments:
•

April 15 (for payment period Jan 1–Mar 31)

•

June 17 (for payment period Apr 1–May 31)

•

September 16 (for payment period June 1–Aug. 31)

•

January 15 (for payment period Sept. 1–Dec. 31)

How to pay — Pay online or by mail or phone (see Form 1040-ES below).
How to estimate — Use one of these forms to figure your estimated taxes:
• Form 1040-ES, Estimated Taxes for Individuals (PDF) or
•

Form 1040-ES (NR), U.S. Estimated Tax for Nonresident Alien Individuals
(PDF)
NOTE: Do you work as an employee in one job and do gig work on the
side? You can often avoid making estimated tax payments by withholding
more tax from your paycheck. Fill out a new Form W-4 and give it to your
employer.

See also:
•

Publication 505, Tax Withholding and Estimated Tax

∠

File an Annual Tax Return

To file your tax return as a self-employed individual:
Get instructions — Find out how to complete tax forms and report income and
expenses for certain kinds of gig work:
• Instructions for Form 1040
• Publication 334, Tax Guide for Small Business (For Individuals Who Use
Schedule C or C-EZ)
• Publication 527, Residential Rental Property (Including Rental of Vacation
Homes)
• Publication 587, Business Use of Your Home
Complete your tax return — Use the records you gathered (see Prepare to File
above) to fill out these forms:
• Form 1040, U.S. Individual Income Tax Return
•

Schedule SE (Form 1040), Self-Employment Tax

•

And either:
• Schedule C (Form 1040), Profit or Loss from Business (Sole
Proprietorship) or
•

Schedule C-EZ (Form 1040), Net Profit from Business (Sole
Proprietorship)

File your tax return — Choose a filing option:
• IRS Free File — Use free tax prep software or fillable forms based on your
income.
•

Volunteer Income Tax Assistance site — Get free, in-person filing help near
you.

•

Authorized e-file provider — Search the list of tax professionals approved
by the IRS for e-filing.

•

File by mail — Find addresses by state to mail your tax return.

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Pay quarterly estimated taxes by
the due dates to avoid a penalty:
• April 15
• June 17
• September 15
• January 15

Make a Payment