EVENT DESCRIPTION
Roughly 80 million Americans earn gig income, and OBBB reshaped how much of it gets reported. The 1099-MISC and 1099-NEC threshold jumps from $600 to $2,000 in 2026 while the 1099-K reverts to $20,000 and 200 transactions — leaving more income unreported to the IRS but no less taxable to the client. This two-hour course covers the tax issues gig workers and their preparers face in 2026. It works through classification as hobbyist, employee, or independent contractor under the common law factors, Silk, Alford, and California's ABC test; the reporting maze across Forms W-2, 1099-MISC, 1099-NEC, and 1099-K, including the double-counting risk when a client and a payment platform both issue forms; and OBBB's new § 224 tip deduction and overtime deduction, with their phase-outs, occupation lists, and sunset after 2028. Coverage extends to vehicle expenses and the new car loan interest deduction, the QBI deduction with its $400 minimum, and the substantiation standards illustrated by Nurumbi, along with taxpayer and preparer penalties under Richey and Rodgers.
EVENT OBJECTIVE
Upon completion of this course, participants will be able to:
• Classify a gig worker as a hobbyist, employee, or independent contractor using the IRS control categories and common law factors.
• Recognize the consequences of worker misclassification and the effect of state tests such as California's AB 5.
• Determine the correct information return for gig payments and apply OBBB's revised 1099-MISC, 1099-NEC, and 1099-K thresholds.
• Identify situations producing duplicate reporting and explain how to avoid double taxation of the same income.
• Apply the § 224 qualified tip deduction, including the MAGI phase-out, occupation requirements, and substantiation alternatives under Notice 2025-69.
• Determine the OBBB overtime deduction, including the premium-only limitation and exempt employee exclusion.
• Calculate vehicle expenses under the standard mileage and actual expense methods, and allocate car loan interest between Schedule C and Schedule A.
• Recognize the substantiation requirements for listed property and the accuracy-related penalties applicable to taxpayers and preparers.
