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New 1099-K earning threshold thrusts many side hustlers, gig workers and casual sellers into small business owner status
KANSAS CITY, Mo., April 02, 2025 (GLOBE NEWSWIRE) -- From bagpiping in a pickle suit to reviving lost recipes, gig workers like Pickle Pete and Dead Gregs are among the millions of taxpayers with revenue-generating side hustles who are fueling the rapidly growing gig economy and redefining what it means to be a small business owner. To showcase the talent and creativity of these gig workers—and motivate them to take their gig to the next level, H&R Block (NYSE: HRB), a leading provider of global tax preparation, financial products and small business solutions, today announced the "Make It Legit" contest.
Entries will be accepted until May 4 for the nationwide contest that is not just a competition, but a platform that will help three lucky gig workers “Make it Legit” by providing key professional business services and marketing support.
“Gig workers often do not see themselves as legitimate business owners, even though they are taxed as such. We believe that if you’re getting taxed like a legit business, you should look like one, too,” said Wendy Fitch, Vice President of Brand, Content, and Insights at H&R Block. “H&R Block has provided help and inspired confidence in its clients and communities for seven decades. This unique contest aims to inspire the more than 70 million individuals1 who classify themselves as gig workers to make it legit, so you can keep every dollar of your hard-earned income.”
With the recent change in the 1099-K reporting threshold, independent workers using third-party payment apps or online marketplaces must now report earnings of $5,000 or more—down from the previous threshold of $20,000. The significant change to the threshold amount means casual sellers, side hustlers and gig workers are now considered small businesses.
A January 2025 H&R Block study conducted by Morning Consult found that nearly half of gig workers, side hustlers and online sellers were unaware of the 1099-K change. Even after learning about it, 50% still said they were not clear on the details as of the start of tax season.2 While their creativity knows no bounds, many gig workers may be limiting their possibilities and their income because they are not receiving credits and deductions small businesses can claim, and are leaving money behind.
The three Make It Legit winners will receive free business formation service and access to one of H&R Block’s tax professionals for year-round tax expertise and to file next year's taxes. Winners will also receive custom marketing materials—such as a new logo, brand colors, custom font and to top it off, their very own commercial shot by a live film crew. Eligible gig workers are encouraged to enter for a chance to win a Make It Legit kit by visiting MakeItLegitContest.com and can find full rules and regulations here.