Rep. Miller introduces bill that seeks to help gig economy workers

U.S. Rep. Carol Miller (R-WV) introduced legislation that would repeal a tax stipulation that impacted gig economy workers.

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Her bill, the Saving Gig Economy Taxpayers Act (H.R. 190), proposes that independent contractors or those who made money through an e-commerce platform would have to earn at least $20,000 and have at least 200 transactions to qualify for a 1099-K form.

The American Rescue Plan, which passed in 2021, lowered this threshold to $600 a year with no minimum on the number of transactions.

“The Saving Gig Economy Taxpayers Act will protect Americans who use online payment platforms, gig economy workers, and small e-commerce sellers from being taken advantage of and will ensure they continue to have access to reliable income streams,” Miller said. “Because of Democrats law change in the 1099-K form, an American getting rid of old exercise equipment from his garage online now qualifies as a salesman of workout equipment, a teenager babysitting the neighbors’ kids is in the childcare business, and roommates who split rent are now property managers, and are all eligible to be taxed by the IRS. The Republican-led House will restore the 1099-K from threshold to levels that were working just fine before Democrats complicated the system.”

Miller first introduced this bill (H.R. 3425) in the last Congress in May 2021. In December of 2022, Miller and Sen. Shelley Moore Capito (R-WV) introduced the Emergency Taxpayer Paperwork and Audit Relief Act to delay its implementation for an additional year. As a result, the Internal Revenue Service (IRS) announced a delay in the implementation of the 1099-K reporting requirement for that additional year.