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Side Hustles 2023: Taxpayers Need To Report Online Payment For Gig Works, IRS Says

Side Hustles 2023 [Photo: The Eastern Echo]
Side Hustles 2023 [Photo: The Eastern Echo]

The Internal Revenue Service (IRS) established new rules about online payments made for side hustles 2023. The agency’s new system is intended to improve the ability to detect undeclared taxable income.

IRS on Side Hustles 2023 [Photo: Accounting Today]

IRS on Side Hustles 2023 [Photo: Accounting Today]

The Internal Revenue Service (IRS) has established new rules that would collect more information about online payments made to Venmo and other apps that are often used for side hustles 2023. This new system of the IRS is reportedly intended to improve the agency’s ability to detect any undeclared taxable income.

According to Neuman, for individuals whose incomes come from steady jobs, the new rules established by the IRS will most likely not make any much difference. This is because, since the 1940s, the IRS receives the same information from employers about incomes that go on W-2 and 1099 forms. However, for incomes that come from side hustles 2023 like cleaning houses or catering from one’s own kitchen in exchange for cash, employers must report any income to the IRS for tax purposes.

READ ALSO: The Secret To Making Millions On The Side: Experts Reveal The Least Time-Consuming And Most Lucrative Side Hustles Of 2022

Changes in Side Hustles 2023

An article in The Conversation states that to date, it is far more common for side hustles 2023 to be paid online through apps such as Venmo, Square, and Stripe or platforms like Etsy, Rover, Upwork, and Poshmark than to use cash or checks. Even illegal activities such as drug dealings are still required by the IRS to be reported for tax purposes.

Furthermore, the IRS has long acknowledged side hustles 2023 as an important source of the “tax gap”. Reportedly, a tax gap is the difference between how much taxpayers must pay and how much they actually pay.

READ ALSO: 2023’S Hottest Side Gigs: Make Money In The Face Of Inflation

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