Saving Gig Economy Taxpayers Act

Saving Gig Economy Taxpayers Act

This bill modifies requirements for third party settlement organizations to eliminate their reporting requirement with respect to the transactions of their participating payees unless they have earned more than $20,000 on more than 200 separate transactions in an applicable tax period. A third party settlement organization is the central organization that has the contractual obligation to make payments to participating payees (generally, a merchant or business) in a third party payment network.

This reverses a provision in the American Rescue Plan Act of 2021 that lowered the reporting threshold to $600 with no minimum on the number of transactions.

Bill 118 HR 190, also known as the Saving Gig Economy Taxpayers Act, is a piece of legislation currently being considered in the US Congress. The bill aims to provide tax relief for individuals who work in the gig economy, such as Uber drivers, freelance writers, and TaskRabbit workers.

The main provisions of the bill include allowing gig economy workers to deduct certain business expenses from their taxable income, similar to how traditional small business owners are able to do. This would help offset some of the costs associated with working in the gig economy, such as vehicle maintenance, equipment purchases, and marketing expenses.

Additionally, the bill seeks to simplify the tax filing process for gig economy workers by creating a standardized form specifically for reporting income earned through gig work. This would make it easier for individuals in the gig economy to accurately report their income and expenses, reducing the likelihood of errors on their tax returns. Overall, the Saving Gig Economy Taxpayers Act aims to provide much-needed tax relief and simplification for individuals working in the gig economy. By allowing for deductions of business expenses and creating a standardized reporting form, the bill seeks to level the playing field for gig economy workers and ensure they are not unfairly burdened by the current tax system.