Have a Side Hustle?

What You Need To Know Before You File Taxes

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.

With this in mind, here are five important things to keep in mind, before you file your taxes with the IRS.

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.

There are two easy ways to deal with anxiety when it comes to filing taxes for your side hustle income. The first is to know what you need and when you need it.

Tax Forms Matter

As a gig income earner, you’re automatically going to need a 1040 and a Schedule C, and may need one or more additional forms.

Dinner out with a client, a business-centered phone bill, advertising costs; all those business-related costs become deductions that you should include in your taxes. This slashes the amount you owe to the IRS and greatly reduces your tax bill.

Stash Your Receipts for Tax Day

When you claim someone on your taxes, you might be eligible for EIC or earned income credit, the Child Tax Credit, and other dependent credits.

Claim All Your Dependents

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