1) Record Keeping Keeping accurate records of your income and expenses is essential for tax planning. Save receipts and track your earnings to ensure you clearly understand your financial situation. This information will be crucial when filing your tax return or negotiating a payment plan with the IRS.

2) Deducting Expenses Gig workers and freelancers can lower their taxable income by deducting business-related expenses. Common deductions include supplies, equipment, and a portion of rent or mortgage if they have a dedicated workspace in their homes.

3) Filing Assistance Consider seeking professional help when filing your taxes, as a tax expert can ensure you take advantage of all available deductions and credits. They can also assist in filing the necessary forms and schedules associated with self-employment income.

4) Installment Agreements If you cannot pay your tax liability in full, you can request an installment agreement from the IRS. This plan allows you to pay your debt over time, making it more manageable. Be prepared to provide financial information and negotiate with the IRS to determine the terms of your agreement.

5) Offer in Compromise (OIC) If you're experiencing financial hardship, you may be eligible for an OIC, which allows you to settle your tax debt for less than the total amount owed. The IRS will consider factors such as your income, expenses, and asset equity to determine if you qualify.

6) Penalty Abatement If penalties contribute to your tax debt, you can request penalty abatement from the IRS. They may remove penalties if you have a reasonable cause for noncompliance, are a first-time offender, or live in a federally declared disaster area. Staying informed about tax laws and regulations is crucial for gig workers or freelancers to avoid accumulating tax debt. By seeking professional help, maintaining accurate records, and exploring available tax debt relief options, you can regain control of your financial situation and continue thriving as self-employed.