Summer is coming, a time when many students and others earn money through the gig economy. This means they use online platforms to find and perform on-demand work and provide services. Regardless of how this money is received, it’s subject to self-employment tax and may trigger a Form 1099-K if earnings exceed $600. Selling items online also generates taxable income, subject to self-employment tax. One seller learned this the hard way. After selling $41,972 in movie memorabilia online, he reported the amount as “other income” exempt from self-employment tax. The U.S. Tax Court ruled the income wasn’t exempt and added penalties due to the tax deficiency. (TC Memo 2025-13). Contact us with questions. © 2025