Learning QuickBooks for Your Gig Business
In a recent article, we identified that starting a new business comes with the obligation to track your income and expenses in order to report them on your tax return. Learning how to use QuickBooks will help to alleviate the stress-related anxiety in properly recording your transactions.
“Gig” Sharing Economy by the IRS
Learning how to use QuickBooks is a great start on your path to tax compliance. Are you part of the “gig” sharing economy? Here’s Rachel, from the IRS, with more information.
Transcript: Intro:
Hi! I’m Rachel, and I work for the Internal Revenue Service. So, your sister turned her social media passion into a paying gig, creating social media sites for local businesses. Meanwhile, your best friends are using their cars for a few hours to pick up passengers and make some extra money. And your neighbor’s kids are away at college, so they rent their spare rooms out to travelers. What do they all have in common? They’re participating in the sharing economy, also called the “gig,” “on-demand,” or “access” economy.
Transcript: Tax Rules
With the help of online platforms or mobile apps, people find short-term jobs covering a wide variety of skills. And more and more people use their cars in their spare time to pick up passengers or rent their spare rooms out. If you use your car or house through a mobile app or an online platform, or you find jobs that way, you need to keep in mind the tax implications. The IRS has set up special information to help you navigate your tax responsibilities in these emerging areas.
Keep in mind if you receive income from a sharing economy activity, it’s generally taxable. On the other hand, some of your business expenses may be deductible. So if you’ve joined the sharing economy, head on over to the Sharing Economy Tax Center at IRS.gov to see what tax issues may affect you. For instance, should you pay estimated taxes? Are you an employee or an independent contractor? And what forms do you need to file? Know the tax rules so you’re ready come tax time. Learn more at irs.gov/sharingeconomy
*IMPORTANT: Due to tax relief related to the COVID-19 outbreak, the information in this video may not include the latest updates. Visit https://www.irs.gov/coronavirus for more information. Do you participate in the sharing economy– also called the gig, on-demand or access economy? Learn what tax issues may affect you. Visit https://www.irs.gov/sharingeconomy
Get Started on QuickBooks!
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Learning From a QuickBooks Expert
My Live Bookkeeper offers personalized QuickBooks training and support for your skill level. Together, you create the best way to learn QuickBooks for you and your business. We can offer tips and tricks, how-tos and procedures, “accountant speak” translation, explanations of important processes or features (such as reconciliation), and an accountability partner to keep you on track.
Regardless of your reason to learn QuickBooks, you can rely on My Live Bookkeeper to be an ally and collaborator when you need it. If you get stuck or need help with correcting a more complicated issue, My Live Bookkeeper can coach you through it with QuickBooks training. Reach out to [email protected] or Schedule an Appointment for a free consultation.