Side Hustles: 5 Things to Know Before You File Taxes

36% of American workers are part of the gig economy and the so-called gig economy in the United States is growing three times faster than the traditional American workforce. 

According to Team Stage, independent contractors, temporary positions and permanent part-time work is here to stay. Instead of just providing additional “catch up” income, side hustles are more often than not how folks pay all of their bills. 

All that work means income and like any other earnings, that means paying taxes to the Internal Revenue Service. 

Side Hustles Aren’t Free Money

It is completely taxable, whether you made $1 or $100,000; you must report your side hustle income to the IRS on a Schedule C form. 

1099-NEC: One really easy way to make sure your side gig income is reportable is to ask your clients to fill out a 1099-NEC. 

Tax Forms Matter

As a gig income earner, you’re automatically going to need a 1040 and a Schedule C. The Schedule C basically tells the IRS that you’re a business owner, so they know what classification to put you under. 

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