Reporting Showdigs Earnings for Tax Purposes

Updated 6 months ago by Kobi

Since Showdigs Agents are Independent Contractors, we do not withhold any taxes from your pay and Agents are responsible for their own tax obligations. Showdigs cannot provide any tax advice, and you should seek the assistance of a tax professional if you are unsure of how to report this income.

In the United States, all Agents that earn more than $600 within a calendar year will receive a 1099-NEC form to report the income you made with Showdigs.       

Will I receive a 1099 if I earned less than $600 in 2020?

No, only Agents who earned $600 or more within a calendar year will receive a 1099-NEC form.

How will I receive my 1099-NEC form?

For 2020, Showdigs will mail your tax form to the address you used when you set up your payment account through our partner Stripe.

How do I update my mailing address?

To check and edit your mailing address, please open the Showdigs app on your Phone. Open your payment dashboard by Visiting Profile->Payments, and click on the Account tab.

Why am I receiving a 1099-NEC and not a 1099-MISC?

Beginning with the 2020 tax year, the IRS requires Showdigs to report income on the new Form 1099-NEC instead of Form 1099-MISC.

How does Showdigs calculate 2020 earnings?

We add up all of the payments that Showdigs deposited into your account during the calendar year. The dates we use are the dates we deposited the money in your account, not the dates you completed your tasks.

Tax Deductions

You may be able to deduct expenses from your earnings and only pay taxes on what’s left. If you keep track of things like your mileage and vehicle costs, this could add up to substantial savings come tax season. Consult a tax professional to understand the business costs that may be eligible for full or partial deductions.

Which expenses might be eligible?

Vehicle costs, mileage, car insurance, tolls & parking, phone & phone plan, or accounting & bank costs from running your business on the Showdigs platform.

Why it's important to track expenses like mileage? 

As someone operating your own business, the IRS allows you to deduct expenses from your income, which reduces your tax liability. Your travel mileage, for example, may be a significant expense, so if you know how many miles you drove, you can reduce the amount you owe for taxes (or increase your refund). Visit here for an IRS publication on Standard Mileage Rates at a Glance. 


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