What Is the Gig Economy (and How Is It Taxed)?

The gig economy refers to short-term, flexible work typically arranged through digital platforms — think Uber, Fiverr, TaskRabbit, or Etsy. Workers in the gig economy are generally classified as independent contractors, not employees. This means no employer withholds taxes, provides benefits, or matches Social Security contributions. All net income is subject to both income tax and self-employment tax. You report it on Schedule C, and deductions for business expenses can significantly reduce what you owe.