China may have signaled it's going more hard-line on trade, but it could be a good thing, former U.S. negotiator Clete Willems told CNBC.World Economyread more
As China's economic growth declines, some analysts say Beijing may have to spend more on infrastructure, adding to concerns about high debts.China Economyread more
After years of speculation, Neuralink, the brain-machine interface start-up co-founded by Elon Musk, started talking directly to the public on Tuesday.Technologyread more
"The charts, as interpreted by Carley Garner, suggest that the upside in the stock market has gotten more limited," Jim Cramer says.Mad Money with Jim Cramerread more
John Paul Stevens, who served on the Supreme Court for nearly 35 years and became its leading liberal, has died.Politicsread more
A key read on the industry, the Architecture Billings Index, fell into negative territory in June, according to the American Institute for Architects. Inquiries for new...Real Estateread more
The largest U.S. banks are scrutinizing members of the Federal Reserve for any insight into how the central bank will tinker interest rates.Banksread more
Mikaila Ulmer may be just 14 years old, but the Me & the Bees Lemonade founder knows a thing or two about business.Young Successread more
U.S. President Donald Trump said Tuesday that Washington and Beijing have a long way to go on trade, adding that America could place tariffs on an additional $325 billion...Asia Marketsread more
The U.S. and China restarted their trade talks, but signs are showing a comprehensive deal could be a long way off, if it happens at all.Marketsread more
The WTO ruling recognized that the United States had proved that China used state-owned enterprises to subsidize and distort its economy. But the U.S. must accept Chinese...World Economyread more
The new tax law may entice more employees to strike out on their own.
Uber drivers, Lyft drivers, freelancers and other independent contractors will be able to deduct 20 percent of their income from their taxable income before paying the new lower tax rates. This goes into effect when people file their 2018 income taxes.
Gig economy workers through services such as Uber, Lyft and TaskRabbit, as well as IT consultants in Silicon Valley, management consultants and even stockbrokers who forgo benefits and certain legal protections to work as independent contractors all qualify for this deduction.
The gig economy is rapidly growing and expected to make up 43 percent of the American workforce in two years, according to research from TurboTax maker Intuit. By 2020, 7.6 million people will be working in the gig economy, double the 3.2 million gig economy workers from 2015.
While the tax change may entice more workers into contract work, independent contractors still don't have the same protections employees do, such as health insurance and workers' compensation.
Edward Kleinbard, a professor at the University of Southern California and former chief of staff to Congress' Joint Committee on Taxation, said the discounted tax rate phases out at higher incomes very quickly.
Individuals who make below $157,500 and married couples who earn below $315,000 qualify for this 20 percent deduction.
But there are provisions that allow people above those income levels to benefit. The deduction was created for sole proprietors and owners in partnerships and other non-corporate enterprises. So those who have income from "non-corporate enterprises" can deduct 20 percent of that income before filing taxes on it.
This includes those who have money in private equity, venture capital or publicly funded partnerships, says Mark Gergen, a professor of tax law and policy at the University of California, Berkeley School of Law. He adds that these pass-through deductions were not created with the explicit intention of helping gig workers — that was a side effect.
Intuit's TurboTax is updating its software to help people figure out if they are eligible by answering a few questions. TurboTax has software geared toward helping those who are self-employed and independent contractors. Lisa Greene-Lewis, CPA and tax expert for TurboTax, said it launched this product after seeing a trend toward more self-employment.
Last year Credit Karma partnered with Uber and Lyft, and drivers could use Credit Karma Tax to prepare and file their taxes for free. "We have step-by-step guides for Uber and Lyft drivers and a dedicated support team that is available 24/7 to help people prepare their taxes," said Jagjit Chawla, Credit Karma's general manager for tax.