The end result is that many more gig workers can accurately report their income — which, in turn, means that federal and state governments will collect billions more in income tax revenue. New Income Reporting Threshold for Gig WorkersThe new requirement is in Section 9674 of the federal bill and dramatically lowers the annual 1099-K reporting threshold from $20,000 and 200 transactions to just $600 and eliminates the transaction minimum. Billions In Additional Income Tax RevenueWendy Walker, a principal for the tax firm Sovos, said the 1099-K change was a surprise, but a welcome one for tax transparency. A total of 12 states plus Washington, D.C. now have created their own 1099-K for gig workers, but the reporting requirements vary. That meant their income had to be substantiated by hand, which takes a long time and caused huge delays with gig workers receiving unemployment benefits.

Source: Forbes March 12, 2021 14:26 UTC