Many clients ask us, “I have multiple side gigs: how do I report this to the IRS?
It’s great to allow yourself to explore your passion and turn your skills to a profitable value. In dollar terms, the gigs could help with household expenses, pay off student loans, and much more. But keep in mind that while you are indeed supplementing your income there are tax considerations you need to be aware of to avoid messing up your taxes.
Tax Considerations when it comes to a Side Hustle
- For jobs that are in the same or similar line of business can typically be reported on one Schedule C – Daniel Ahart Tax Service will help you to properly report your income.
- For jobs that are in different line of business need to be reported on separate Schedule C – In other words, if the types of jobs are very different, then you may need to attach multiple Schedule Cs to your tax return.
Keep in mind that the Form Schedule C has many categories to help classify your expenses related to your business or side gig,” says Daniel Ahart, chief tax officer at the tax preparation company Daniel Ahart Tax Service®
When you are self-employed (whether you run your business full time or if you have a part-time side gig) and your net income is $400 or more, you are responsible for filing a tax return and paying the entire 15.3% of Social Security and Medicare taxes when you file which are known as self-employment taxes.
Daniel Ahart Tax Service® prepares all tax returns, helps solve tax problems, and prepares back taxes. 22 Area Locations in Georgia.
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