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 <img src="https://media.eaglewebservices.com/public/2020/9/1599869632873.png" alt="" />
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 </figure>IRSWASHINGTON — The Internal Revenue Service reminds workers in the gig 
economy and those who claimed unemployment compensation in 2020 of their
 options and where to find information on meeting their tax obligations.<h2>Gig economy</h2>The gig economy refers to income earned providing on-demand work 
performing services or selling goods, including driving a car for booked
 rides or deliveries, renting out property, selling goods online or 
freelance work. Often, customers and service providers or sellers are 
brought together through a digital platform on an app or website. Visit 
the <a href="https://www.irs.gov/businesses/small-businesses-self-employed/sharing-economy-tax-center">Gig Economy Tax Center on IRS.gov</a> to learn more about withholding and estimated tax requirements for these types of earned income and paid services.Taxpayers should collect and keep records and receipts during the year. <a href="https://www.irs.gov/businesses/small-businesses-self-employed/recordkeeping">Recordkeeping</a> can help track income, deduct expenses and complete tax returns.<h2>Unemployment benefits</h2>A record number of Americans applied for unemployment compensation in
 2020 due to the pandemic. Anyone who received unemployment benefits 
will need to report it on their tax returns.However, the American Rescue Plan, enacted on March 11, 2021, 
excludes from income up to $10,200 ($20,400 if married filing jointly) 
of unemployment compensation received in 2020 for taxpayers with 
modified adjusted gross income under qualifying thresholds. Any amount 
over $10,200 is still taxable for each person. To determine if payments 
received for being unemployed are taxable, see the <a href="https://www.irs.gov/help/ita/are-payments-i-receive-for-being-unemployed-taxable">Interactive Tax Assistant</a> on IRS.gov.For those who have already filed their 2020 tax return and paid taxes
 on the full amount of unemployment compensation before the law was 
passed, they should not file an amended return. The IRS will 
automatically refund money to people who already filed their tax return 
reporting unemployment compensation.The IRS will recompute any credits and deductions claimed on the 
original return. However, if the reduction of income now qualifies a 
taxpayer for a new credit not claimed on the original return, like the 
Earned Income Tax Credit (EITC), those taxpayers will need to file an 
amended tax return, Form 1040x, to claim the new credit. Taxpayers can 
see if they <a href="https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant">qualify for the EITC</a> at IRS.gov.Unemployment benefit recipients should have received a <a href="https://www.irs.gov/forms-pubs/about-form-1099-g">Form 1099-G, Certain Government Payments, </a>from
 the agency paying the benefits. The form will show the amount of 
unemployment compensation they received in 2020 in Box 1, and any 
federal income tax withheld in Box 4.Some states do not mail Form 1099-Gs. Taxpayers may need to get the electronic version from their state's website.Taxpayers who received an <a href="https://www.irs.gov/newsroom/irs-offers-guidance-to-taxpayers-on-identity-theft-involving-unemployment-benefits">incorrect Form 1099-G</a>
 for unemployment benefits they did not receive should contact the 
issuing state agency to request a revised Form 1099-G showing they did 
not receive these benefits.Taxpayers who are unable to obtain a timely, corrected form from 
their state should still file an accurate tax return, reporting only the
 income they received. A corrected Form 1099-G showing zero unemployment
 benefits in cases of identity theft will help taxpayers avoid an 
unexpected federal tax bill for unreported income.Additionally, if taxpayers are concerned that their personal 
information has been stolen and they want to protect their identity when
 filing their federal tax return, they can request an <a href="https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin">Identity Protection Pin (IP PIN)</a> from the IRS.Generally, by law, unemployment compensation must be included as 
income. Taxable benefits include any of the special unemployment 
compensation authorized under the Coronavirus Aid, Relief, and Economic 
Security (CARES) Act, enacted in 2020.If a taxpayer didn't report income from gig work or unemployment 
compensation on a return, a corrected return can be filed using <a href="https://www.irs.gov/forms-pubs/about-form-1040x">Form 1040-X, Amended U.S. Individual Income Tax Return</a>. Form 1040-X can be filed electronically.Taxpayers <a href="https://www.irs.gov/taxtopics/tc202">who owe but can't pay in full</a> always have options to seek help through payment plans and other tools from <a href="https://www.irs.gov/payments">IRS.gov/payments</a>.Tax information is also available in:<ul>
 <li><a href="https://www.irs.gov/es">Spanish&nbsp;(Español)</a>&nbsp;</li><li><a href="https://www.irs.gov/zh-hant/">Chinese&nbsp;(中文)</a>&nbsp;</li><li><a href="https://www.irs.gov/ko">Korean&nbsp;(한국어)</a></li><li><a href="https://www.irs.gov/ru">Russian&nbsp;(Pусский)</a></li><li><a href="https://www.irs.gov/vi">Vietnamese&nbsp;(TiếngViệt)</a></li>
 </ul><h2>Resources</h2><ul>
 <li><a href="https://www.irsvideos.gov/Individual/PayingTaxes/UnderstandingTheGigEconomy">IRS Webinar – Understanding the Gig Economy</a></li><li><a href="https://www.irs.gov/pub/irs-pdf/p5369.pdf">Gig Economy and Your Taxes: Things to Know&nbsp;PDF</a>&nbsp;</li><li><a href="https://www.irs.gov/paycheck-checkup">Pay As You Go, So You Won't Owe: A Guide to Withholding &amp; Estimated Taxes</a>&nbsp;</li><li><a href="https://www.irs.gov/forms-pubs/identity-theft-guidance-regarding-unemployment-compensation-reporting">ID Theft regarding unemployment</a>&nbsp;</li><li><a href="https://www.irs.gov/taxtopics/tc418">Tax Treatment of unemployment</a></li>
 </ul>

IRS offers options on gig economy workers, unemployment benefits