What do tax overhaul proposals mean for ‘gig economy’ workers?
There is no shortage of analysis related to taxes right now. The president has offered a peak at what he would like to see and the Republican-controlled House is hashing its way through a long list of proposals, adding here and taking away there.
No one can predict what the final tax overhaul bill will look like. One thing that nearly every observer seems to agree upon, though, is that this overhaul needs to specifically address the development and anticipated growth of the so-called “gig economy.” Regular readers will recall that we’ve talked about this on a number of occasions, most recently
The experts point to a couple of reasons why this is so important. One is that many individuals working in the smartphone-driven service market are failing to report income to the tune of about $215 billion a year. Another is that so many of those who work in the sector are unfamiliar with what their obligations are regarding filing their tax returns, which can lead to
What all this means, unfortunately, is that there is no simple answer to the question posed in the title of this post. Observations come from all corners. In one recent column on CNBC.com, writer Jake Novak suggested that the overhaul plan should boost the standard deduction. He says that’s because itemizing deductions is so complicated that the growing population of independent contractors are likely not to even try to file for them.
Meanwhile, a Republican proposal called The
Some legal analysts say the measure would be welcome news to employers while doing little to reduce confusion for taxpayers.
For now, the best advice would seem to be, remain vigilant.
