Resources

The procedures for compensating yourself for your efforts in carrying on a trade or business will depend on the type of business structure you elect. Click on the link to read on topics that frequently arise when new business owners ask the Internal Revenue Service questions about paying themselves.

How to claim side gig work to get a tax refund

Gig work is certain activity you do to earn income, often through an app or website (digital platform), like:

• Drive a car for booked rides or deliveries
• Rent out property or part of it
• Run errands or complete tasks
• Sell goods online
• Rent equipment
• Provide creative or professional services
• Provide other temporary, on-demand or freelance work

Note: This list does not include all types of gig work.

• Standard Deduction Increased
  • Head of Household $20,800
  • Married Filing Separate OR Single $13,850
  • Married Filing Joint OR Qualifying Widow $27,700
• Earned Income Increased
  • No qualifying children: up to $600
  • 1 qualifying child: up to $3,995
  • 2 qualifying children: up to $6,604
  • 3 or more qualifying children: up to $7,430
• AMT Exemption Increased
  • The AMT exemption amount has been increased to $81,300 ($126,500 MFJ). The income level at which the AMT exemption begins to phase out has increased to $578,150 ($1,156,300 MFJ).