7 Tax Mistakes To Avoid If You’re a Gig Worker

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Its essential to keep detailed records of every gig payment and invoice.

This includes cash payments such as tips.

Deductions are the lifeblood of a gig worker because they reduce your taxable income.

Gig workers often miss out on deductions by incorrectly categorizing their expenses, Stroup said.

Failure to account for this can lead to a larger tax bill down the road, Stroup said.

Unbeknownst to them, this approach can lead to unnecessary penalties and interest.

Its best to make payments every three months to avoid surprises during tax season.

Without separate accounts, its harder to track income and expenses, leading toinaccurate tax savings, Rivera warned.

Avoiding these mistakes can save you money at tax time.

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