Gig Job Caveats
A gig is a job that allows you to work for companies as a contractor. Uber, Lyft, Instacart, Postmates, etc...
These are great opportunities for folks looking to get a few extra bucks in the bank.
There is one big caveat to know about these positions. They are 1099 contractor positions, which means that federal, state, and other taxes are not withheld from your pay. This means more money in your pocket up front, but keep in mind, Uncle Sam wants his due.
These companies have to file paperwork with the state and federal government that shows who was paid and how much. At the end of the year, when it is time to file taxes, you will receive a 1099, 1099-MISC, 1099-K, etc...
You will use these forms to file your taxes for the year. You will owe your share of taxes at this time. Make sure that each payment you receive, you are setting enough aside to pay these taxes.
Oh boy, I know this, my accountant told me I should have 3000.00 prepared, I do not
This is great info. I had totally forgotten about this - I had to fill out several 1099s in college and that was a nightmare. Thanks!
Very good point Anthony Harrington for those that have not worked as a contractor and filled out a 1099. When in doubt ask a tax consultant if you are concerned. Thanks for this post!
Some of your expenses as an Independent contractor is a write-off, for example, mileage, Lodging, meals, parking etc.. make sure you have any apps on your phone to track all expenses. Thank you for the reminder Anthony H.