Summer brings sunshine, barbecues, and… side hustles? That’s right. Many people take advantage of the extra daylight and seasonal opportunities to earn a little extra income—whether it’s delivering groceries, walking dogs, selling crafts online, or freelancing on weekends. But before you dive in, there’s something you should know: the IRS sees your side hustle as taxable income.
Here’s a full breakdown of what that means—and how to make sure you’re covered.
1. Every Dollar Counts (to the IRS) If you earn more than $400 through self-employment, gig apps, or cash-based work, you’re required to report it to the IRS. Even if you don’t receive a 1099 form, that income is still considered taxable. Apps like Venmo, PayPal, or Zelle transactions don’t automatically make income invisible to the government.
2. Keep Detailed Records from the Start One of the most common mistakes side hustlers make is waiting until tax season to start organizing. Track everything now: mileage, receipts for supplies, advertising costs, website fees, and even your cell phone bill if you use it for business. A notebook, spreadsheet, or bookkeeping app like QuickBooks Self-Employed can make it easier to stay on top of your numbers.
3. Understand Self-Employment Tax If you’re self-employed, you’re responsible for both the employer and employee portion of Social Security and Medicare taxes (that’s 15.3%). Many people are surprised by how much they owe because of this. Don’t let it sneak up on you.
4. Estimated Quarterly Payments Might Be Required Earning more than a few thousand dollars over the summer? You might need to pay estimated quarterly taxes to avoid IRS penalties. If this is your first year side hustling, you may not realize this requirement—but we do, and we can help you set it up.
5. We’re Here to Help You Hustle Smarter Side hustling is empowering. It’s flexible. And it can be profitable with the right planning. Let us help you navigate the tax side of things so you can focus on growing your income.
🧾 Ready to get started the right way? Call us at 770-609-6890 or schedule your consultation here: https://ilovedoingtaxes.net/book-online
