Tax tips for gig workers

Everyone has to file tax returns, but not all tax returns were created equal - especially when it comes to gig workers. Dan Geltrude, Managing Partner at Gesture & Company, joined TheStreet to dish out some tips for people who don’t have a regular 9 to 5, as well as some things everyone should keep in mind when filing this year.

FULL VIDEO TRANSCRIPT BELOW

J.D. Durkin: Dan, what sort of tips do you have for freelancers or gig workers? The gig economy is so important, so prominent these days. And what should those type of gig workers keep in mind?

Dan Geltrude: Well, you know, when you're a gig worker, you have the opportunity to basically be self-employed. And when you're self-employed, you actually have the opportunity to take advantage of some tax deductions that you would normally not get. For example, if you are working from your home and it's related to a gig, you can deduct that home office, which you normally can't. You could also deduct auto expenses. So everything related to doing that side hustle as an independent contractor, all the expenses you incur related to that are likely to be tax deductible. So you want to be mindful of that.

J.D. Durkin: What is one thing everyone should keep in mind when filing taxes?

Dan Geltrude: Look, the thing that you need to keep in mind is what happens if you don't have the money to pay. You file your tax return and you're like, oh, no, I owe. What do I do? Do I not file? What you do is, is you file your tax return anyway. Why? even if you don't have the money, because it will lessen the penalties, then you could explore the opportunity to have an installment agreement with the IRS, which is form 94 to 65. And there is also the ability to do an offering compromise. So if you get hit with something unexpected and you can't make the tax payment file anyway and then try to work with the IRS to get a payment plan in place.