The recipient of Ernst & Young’s Entrepreneur of the Year award in 1995, Ted “Theodore” Catino co-founded a successful auto financing company as well as an investment firm. Ted Catino’s latest endeavor is GigSmart, a mobile application which connects businesses with individuals seeking short-term job opportunities.
Millions of people worldwide are working gig economy jobs, in which they take on flexible, part-time work to earn additional revenue. Payment for such services or work completed generally doesn’t have any taxes withheld, which can present problems for gig economy workers come tax season unless they plan accordingly. A recent study conducted by the National Association for the Self-Employed found that most gig workers aren’t aware that they are required to file as a small business.
A company is only required to send a 1099-K tax form to a worker and the Internal Revenue Service (IRS) if the worker made over $20,000 through 200 transactions in a given year. Meanwhile, 74 percent of the people in the aforementioned study claimed they made less than $5,000. It’s recommended to seek help from a tax professional, as most low-income gig workers can receive a variety of tax deductions and benefits. Recognizing the current growth of the gig economy, TurboTax recently released a new program, TurboTax Self-Employed, to help freelance workers during tax season.