March 13, 2025March 13, 2025
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Side Hustles & Freelance Income: What You Need to Report to the IRS

Got a side hustle or freelance gig? Whether you’re selling art on Etsy, driving for Uber, or freelancing on weekends, the IRS wants to know about it.

Here’s what you need to report—and why it matters:

1. 💸 All Income Counts
Yes, all of it. Even if you didn’t get a 1099 form, you’re still required to report any income you earned. This includes cash, PayPal, Venmo, or other third-party payments.

2. 🧾 Watch for 1099-NEC or 1099-K

  • 1099-NEC: If a client pays you $600+ during the year.

  • 1099-K: Starting 2024, if you earn over $5,000 through apps like PayPal, Cash App, or Venmo, you might get this form.

3. ✍️ Keep Good Records
Track your income and expenses—think mileage, supplies, software, home office costs. These can lower your taxable income!

4. 🧮 Pay Self-Employment Tax
Freelancers pay both the employer and employee portions of Social Security and Medicare taxes (15.3%). Don’t forget to factor this into your budget.

5. 📅 Make Quarterly Payments
If you expect to owe $1,000 or more in taxes, the IRS wants you to pay as you go—usually through quarterly estimated payments.

6. 🧑‍💼 Consider a Tax Pro or Software
Taxes can get tricky fast with freelance work. Using tax software or hiring a pro can help you maximize deductions and avoid mistakes.

Bottom line: Hustling on the side is great for your wallet—but don’t let taxes catch you off guard. Report everything, deduct wisely, and stay ahead of deadlines.

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