When You're Not the Typical Taxpayer: Self-Employed and Sharing Economy

When your job isn't typical, your taxes aren't either. There are a lot of benefits to starting your own business, or providing a service through Uber or a similar company, but it also means you have more to deal with this upcoming tax season.

In addition to seeking out professional advice, there are also free resources available to help you navigate the tax-filing process. Sole proprietors and independent contractors can get helpful information from the IRS Small Business and Self-Employed Tax Center. This resource includes online tools such as the Tax Calendar for Businesses and Self-Employed, which has key tax dates and necessary actions for each month of the year.

For those who provide services to consumers, such as rides in personal vehicles for a fee, e.g. Uber, or the use of property, such as apartments or homes for rent, e.g. Airbnb, the IRS created the Sharing Economy Resource Center. It has tips such as:

• Income is generally taxable, even if the recipient does not receive a Form 1099, W-2 or some other income statement, but some or all business expenses may be deductible.
• There are some simplified options available for deducting many business expenses.
• People involved in the sharing economy often need to make estimated tax payments during the year to cover their tax obligation.
• Alternatively, people involved in the sharing economy who are employees at another job can often avoid needing to make estimated tax payments by having more tax withheld from their paychecks. The Withholding Calculator on the IRS website can also be a helpful resource.