If you’re a freelancer, you know that one of the benefits of the gig economy is that you can set your own hours and rates. You also get to choose which projects to work on.
But another big advantage is that you don’t have to worry about filing taxes or paying self-employment tax. That’s because platforms like Fiverr act as a go-between, collecting taxes on your behalf and then remitting them to the government.
But what happens if you don’t file your taxes? Can Fiverr report you to the IRS?
The answer is maybe. If you’re a US citizen or resident alien, the IRS requires that you report all income from all sources, including Fiverr.
That means if you earn more than $600 in a year from Fiverr, the company is required to send you a 1099-K form detailing your earnings. The 1099-K form is also sent to the IRS.
So if you don’t file your taxes and the IRS sees that you received a 1099-K from Fiverr, they may come after you for back taxes, interest, and penalties. And if you try to hide your income by not reporting it, you could be charged with tax evasion, which is a felony.
Of course, if you’re just starting out on Fiverr and only earn a few dollars here and there, it’s unlikely that the IRS will come after you. But if you’re making good money on the platform, it’s important to remember that the IRS is watching. So make sure to file your taxes and report all of your income, even if it’s from Fiverr.
Does Fiverr Report to the IRS?
The answer is maybe.
If you’re a US citizen or resident alien, the IRS requires that you report all income from all sources, including Fiverr. That means if you earn more than $600 in a year from Fiverr, the company is required to send you a 1099-K form detailing your earnings.
So if you don’t file your taxes and the IRS sees that you received a 1099-K from Fiverr, they may come after you for back taxes, interest, and penalties.
And if you try to hide your income by not reporting it, you could be charged with tax evasion, which is a felony.
Of course, if you’re just starting out on Fiverr and only earn a few dollars here and there, it’s unlikely that the IRS will come after you. But if you’re making good money on the platform, it’s important to remember that the IRS is watching.
