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GIG ECONOMY TAX GUIDE
Side hustle income still counts as income.
Driving, delivering, tutoring, consulting, freelancing, selling online, or doing temporary jobs can create self-employment tax responsibilities. OLT can help you report the income and work through Schedule C.
Gig tax basics
Bring the most important filing points from OLT's current guide to the top.
Net self-employment earnings
$400+ may require filing
Common income form
1099-NEC
Other possible form
1099-K
Business income & expenses
Schedule C
Delivery & rideshare
Uber, Lyft, DoorDash, Grubhub and similar app-based work.
Freelance & consulting
Independent-contractor, tutoring, consulting and project work.
Temporary side jobs
Handyman work, mowing lawns, running errands and one-time jobs.
Online selling
Products or services sold online may generate reportable income.
WHAT COUNTS AS GIG WORK?
If you earn money independently, start here.
OLT's current guide defines gig work broadly: on-demand services, temporary side jobs, freelance work and online selling. You do not need to think of yourself as a formal business for the IRS to treat the income as self-employment income.
Rideshare / Delivery
Driving passengers, delivering food or goods.
Freelance Services
Consulting, tutoring, construction or one-off projects.
Local Side Jobs
Handyman work, mowing, errands or temporary help.
Online Sales
Selling products or services through online platforms.
HOW TO REPORT IT IN OLT
From income form to Schedule C.
The current OLT guide gives customers a specific software path. This redesign turns it into a four-step process.
01
Collect your income records
Gather Forms 1099-NEC, 1099-K, W-2 statutory-employee information, and records of cash or checks.
02
Enter the income
Use Federal → Income in OLT. For a 1099-NEC, use Miscellaneous Income → Income from 1099-NEC.
03
Send it to Schedule C
Choose to report the income on a new Schedule C, or enter income directly into Schedule C if no form was received.
04
Add eligible expenses
Work through the Schedule C checklist for vehicle, supplies, home office, depreciation, inventory and other expenses that apply.
COMMON FORMS
Know what each form is telling you.
Income Form
Form 1099-NEC
The current OLT guide says a payer will typically issue Form 1099-NEC for nonemployee compensation when the payer meets applicable reporting requirements.
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Enter the form as it appears
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OLT can transfer the income to Schedule C
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You may still have self-employment income even if no 1099-NEC was received
Payment Platform Form
Form 1099-K
OLT's current page notes that payment platforms such as PayPal or Venmo may issue Form 1099-K for payments received for services or products.
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Use the form as an income record
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Reconcile it with your own business records
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Report the underlying business activity appropriately in OLT
Production note: Information-reporting thresholds for Forms 1099-NEC and 1099-K can change. OLT's current page includes dollar thresholds, but those amounts should be reviewed against current IRS guidance each filing season before publishing them prominently.
SCHEDULE C IN OLT
A checklist instead of a wall of tax jargon.
The live guide describes eight Schedule C checklist areas. This layout turns them into a clear roadmap.
1. Business Information
Questions are about you and the work you perform—not the company that hired you.
2. Participation, Insurance & Retirement
Material participation, self-employed health insurance and retirement-plan questions.
3. Gross Receipts
Income, returns and allowances; income forms can also be entered here.
4. Cost of Goods Sold
Inventory and the costs of making or reselling items.
5. Depreciation
Long-lived assets such as tools, computers, machinery or vehicles used for the work.
6. Amortization
Certain capital or startup costs deducted over a period of time.
7. Other Expenses
Paper, supplies and miscellaneous work items not treated as long-lived assets.
8. Business Use of Home / At Risk
Home-office information and questions about money you have at risk in the activity.
GET ORGANIZED BEFORE YOU FILE
What to gather for Schedule C.
OLT's existing guide advises customers to collect records first. Make that advice actionable.
Income records
1099 forms, cash/check records, payment-platform statements and other income documentation.
Mileage & vehicle records
Mileage logs and receipts related to business use of a vehicle.
Receipts & statements
Supplies, tools, insurance, travel, meals and other expenses connected to the work.
Home-office measurements
Total home square footage and the square footage used specifically for the home office.
Inventory / cost records
Costs to make, buy or resell items if you sell products online.
Asset purchase records
Vehicles, machinery, computers, tools or other long-lived assets used in the work.
GIG ECONOMY FAQS
Questions OLT customers are already asking.
The current guide contains eleven detailed questions. This redesign makes them easier to scan.
OLT's current guide says income may come from Form 1099-NEC, Form 1099-K, a W-2 marked as statutory employee, or cash/check payments with no form. Keep records of all payments and report the self-employment income in OLT.
The current guide says self-employment income is typically reported on Schedule C. OLT can transfer entered income to a Schedule C after you choose that treatment.
OLT explains that you do not have to consider yourself a formal business entity. The IRS can still treat payment for independent work as self-employment income, and Schedule C is where related income and eligible expenses are reported.
The live guide gives two paths: Federal → Income → Business Income and Losses → Business Income or Loss - Schedule C, or search for “Schedule C” in OLT's form search.
Gather receipts, income statements, mileage and vehicle records, home-office measurements, bank records when receipts are missing, and other documents connected to your gig activity. Then work through OLT's Schedule C checklist in order.
The current guide gives the example of delivery work and house-cleaning work and says separate Schedule C forms may be appropriate because the activities and expenses are different.
OLT's guide says material participation generally means being consistently involved in the work and points customers to IRS Publication 925 for the IRS tests.
The current guide notes that payments to people who work for your self-employment activity may create an information-return filing requirement. It directs customers to current IRS guidance on whether a Form 1099 or other information return is required.
OLT says production, material, purchase and resale costs for items sold are generally entered in the Cost of Goods Sold section within Schedule C.
The current guide describes depreciation as a way of deducting the cost of certain long-lived business assets such as a vehicle, machinery, computer or tools over time.
OLT's guide says the home-office section is located within the Schedule C checklist and points customers to IRS guidance on the regular and simplified methods.
READY TO REPORT YOUR GIG INCOME?
Bring your records. OLT will guide you through the return.
Start your return, enter your self-employment income, and work through Schedule C one section at a time.