Should I pay taxes as a gig worker?
As a gig worker under 1099, the IRS requires you to file for taxes. You will pay taxes only if your net annual income is greater than $400.
Why should I file for taxes, you may ask?
- Save money: if you incur a loss during a year (net income negative), this loss can be carried forward in the future.
- Be compliant: avoid audits by the IRS; they happen more and more frequently, especially when you reach $20,000 in a year.
Your net annual income is your gross income deducted of all the expenses that you have on the job. You can see a list of all expenses that you can deduct here: What expenses can I deduct as a gig worker, according to the IRS?