Q: When do you have to start paying taxes on your side hustle?
A: The moment you break $400 in a yearly income.
Side hustles are the new black. And with this new Millennial vogue comes a question we forget to ask when launching our dreams: what do we do about taxes?
Whether you hit $400 from sales in Etsy, designing WordPress sites (like me) or from your ebook on creative blogging, you need to file taxes.
OMG WHAT? You mean that we have to pay taxes on our side hustles? We don’t just get to pocket that cash and buy that round-trip ticket to Rio de Janerio or reserve that AirBnB spot for next year’s SXSW?
And here’s the real kicker: you need to file it quarterly.
In panic yet? Don’t worry. There are a lot of resources out there for those of us with a side hustle. Freelancers Union has a great FAQ on taxes and Freshbooks created this perfect visual guide.
Now that you know that your side hustle comes with IRS responsibilities, start saving your receipts and invoices. I prefer scanning them into a digital archive—it’s way easier to track that than paper. And if you have questions about filing your taxes, now would be a good time to use some of your profits to visit an accountant to get the lowdown.
Good luck, and continue to hustle!
PS. Looking for inspiration? Buy the hustle wall art in this post’s feature image.