• New Reporting Threshold: In 2023, the IRS has implemented a new threshold. Earning a minimum of $600 across any number of transactions on GigSmart will trigger the issuance of a 1099-K. This change emphasizes the importance of accurately tracking your GigSmart revenue, irrespective of its magnitude.

Recent IRS Update: 1099 Reporting Guidelines

Discussions about potential changes in the 1099-K reporting guidelines for 2023 were ongoing. However, the IRS has confirmed that the reporting threshold will remain at $20,000. The proposed reduction to $600 has been postponed until the 2024 tax year. Staying informed about these changes is vital for managing your GigSmart taxes.

Understanding GigSmart Taxes

Before delving into specifics, it's crucial to understand the concept of GigSmart taxes. GigSmart provides a platform for individuals to earn income through various gig opportunities. However, this also entails tax responsibilities for those generating income through the platform.

Who Needs to Pay GigSmart Taxes?

Individuals earning income through the GigSmart platform bear the responsibility for GigSmart taxes. With the updated threshold, anyone earning a minimum of $600 across any number of transactions is required to receive a 1099-K. This includes a broader spectrum of users, underscoring the importance of diligent earnings monitoring.

How Will GigSmart Deliver Your 1099s?

Upon reaching the $600 earnings threshold on GigSmart, the platform will send you a 1099-K form. Typically, these forms are sent electronically through your GigSmart account. Ensuring your contact and tax information are up-to-date on the platform is crucial for receiving your 1099-K promptly.

Which Tax Forms Are Necessary?

• 1099-K: This form provides details about your gross revenue from GigSmart transactions.
• 1099-MISC: Additional income, such as bonuses, may be reported on this form.
• Schedule C: If you operate as an independent contractor or business on GigSmart, filing Schedule C is necessary to report self-employment income and deductions.

How Can You Minimize GigSmart Taxes?

• Deductions: Identify eligible business expenses related to your GigSmart activities, such as mileage, tools, and necessary supplies, to reduce your taxable income.
• Quarterly Payments: For substantial GigSmart revenue, consider making anticipated tax payments quarterly to avoid penalties at year-end.
• Retirement Contributions: Contribute to a retirement account to reduce your taxable income.
• Tax Credits: Explore potential credits to minimize your overall tax obligation.

What Write-Offs Can You Claim for GigSmart?

• Business Expenses: Deduct the cost of any necessary business-related expenses, including tools, equipment, and necessary supplies.
• Mileage: If you use your vehicle for GigSmart work, you may be eligible to claim mileage as a deduction.

When Do You File Your GigSmart 1099 Taxes?

• January 31: GigSmart typically sends 1099-K forms by this date. Ensure your contact information on your GigSmart account is accurate for a swift receipt.
• April 15: File all income reported on the 1099-K by this date on your federal income tax return.
• Quarterly Estimated Taxes: For substantial income, pay estimated taxes on April 15, June 15, September 15, and January 15 (for the prior year's income).

How Can FlyFin Assist You with Filing Your GigSmart 1099s?

• Tax Preparation: FlyFin's expert CPA team ensures the accurate filing of your tax return, encompassing your GigSmart 1099 taxes. Comprehensive audit insurance is also included.
• Tax Planning: Receive tax planning guidance, including precise self-employment tax calculations and individual tax planning sessions, aimed at minimizing your taxes.
• Expert Guidance: Address all your tax-related queries with FlyFin's tax professionals and receive advice on optimizing credits and deductions.

What’s FlyFin?

FlyFin caters to the tax needs of freelancers, gig workers, independent contractors and sole proprietors. But anyone can file taxes through FlyFin! FlyFin tracks all your business expenses automatically using A.I. technology. Then, our CPA team files a guaranteed 100% accurate tax return for you – to save you a couple thousand dollars and a ton of time on your taxes. In addition, you can download the FlyFin app and have your taxes filed in less than fifteen minutes, saving time and money.