Just like income from any other source, self-employed individuals have to pay taxes on their side hustle income by the April 15 deadline (or the next working day if it is a weekend or public holiday). So if you were thinking about how to avoid paying taxes on your side jobs, I’m afraid there’s no way out.
One exception to this, as we mentioned earlier, is if your net income is under $400. If you're still struggling with your taxes, use a
side hustle tax calculator to get a clear breakdown on how much you owe the IRS.
When you’re filing taxes for a side hustle, you will report all your income and business expenses on your
Schedule C. To find industry specific tax write-offs you can claim and reduce your side hustle tax by using a
1099 tax calculator.
You will then use
Schedule SE to calculate your self-employment tax. That 15.3% includes Social Security tax (12.4%) and Medicare tax (2.9%). As our tax system works on a “pay as you go” basis, you might need to make estimated quarterly tax payments if you think you will pay over $1,000 in income tax.
If doing these calculations seems confusing, you can use a
quarterly tax calculator to do the math for you. When paying taxes every quarter, you will use
Form 1040-ES. If you missed a quarterly tax deadline, use a
tax penalty calculator to calculate your tax liability.