The gig economy has changed how taxpayers earn money, turning spare hours into income sources that didn’t exist even a decade or so ago. Whether it’s driving passengers around town, delivering meals, or selling handmade goods online, gig work provides flexibility and opportunity. But when tax season comes, sorting out what that flexibility looks like on a 1040 can be complicated. That’s especially the case with the One Big Beautiful Bill Act (OBBBA), signed into law by President Trump in 2025, which creates some new deductions—but that also means new rules.

The gig economy is typically defined as income earned from on-demand work, services, or goods, often using online platforms. Think rideshare drivers for Lyft or Uber, delivery workers for DoorDash, freelancers, online sellers, and even those renting out property. With gig work, there’s no employer withholding taxes or Form W-2 at the end of the year. Instead, the burden of tracking, reporting, and paying taxes falls squarely on the worker.

While it’s important to report your income, you don’t want to leave tax saving deductions on the table. Some new deductions, like “no tax on tips,” also apply to gig workers. Here’s what you need to know.

One of the most important things you need to understand as a gig worker is that all income must be reported. This includes part-time work, side gigs, or temporary projects. It also includes income that never appears on a Form W-2 or 1099. Cash payments, digital transfers, goods received in exchange for services, and even virtual currency all count as income.

For reporting purposes, you may receive a Form 1099-NEC (Nonemployee Compensation), which reports payments of $600 or more to independent contractors for services. This form is typically issued by a business or platform that pays you for your work, and the amount reported generally reflects the gross amount—what you were paid before expenses.

(If that doesn’t seem quite right to you, you might be old school. The switch from reporting nonemployee compensation on Form 1099-MISC to Form 1099-NEC took effect in 2021. Then, the IRS brought back Form 1099-NEC to distinguish compensation from other types of miscellaneous income, align due dates and reduce confusion.)

Even if you don’t receive a tax form, your income is still reportable.

Form 1099-K Goes Back In Time

If you get paid through a payment app like Venmo or an online marketplace like Etsy, you might receive a Form 1099-K. This form reports the total gross amount of payments processed, which may include business income, reimbursements, fees, or even personal transactions if accounts aren’t kept separate.

OBBBA restored the reporting threshold for Form 1099-K to its pre-2022 level: more than $20,000 and more than 200 transactions in a year. While this means you might not get the form if you don’t reach........

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