The One Big Beautiful Bill Act (OBBBA) into law, significantly changing taxes, especially for Northern Virginia’s gig workers, contractors, and small business owners.
The OBBBA makes permanent several 2017 Tax Cuts and Jobs Act (TCJA) tax cuts and overhauls income reporting for contract work and digital payment platforms (e.g., PayPal, Venmo).
Key changes include higher income reporting thresholds for federal tax forms. Starting with the 2026 tax year, the Form 1099-MISC threshold rises from $600 to $2,000, with inflation adjustments beginning in 2027. Form 1099-NEC, used for independent contractors and gig workers (like local rideshare drivers and freelancers), will also follow these new rules.
Northern Virginia, with its above-average concentration of freelancers and independent contractors, will acutely feel these changes. Nationally, the U.S. Bureau of Labor Statistics estimates 16.5 million Americans (10.4% of the workforce) are self-employed. Local tax professionals stress that despite the higher reporting thresholds, all taxable income from side gigs and businesses must still be reported on state and federal returns.
