Published: 2026-08-15
This article provides general information for reference purposes only and does not constitute professional legal, tax, medical, or financial advice. Rules and programs may change. Always verify current details with official sources or consult a qualified professional.
Do I need to pay taxes on side hustle income?
Yes, side hustle income is taxable. You must report it on your tax return, even if you receive a 1099 form or not. The IRS requires you to report all income, including from side hustles and gig work.
What is self-employment tax?
If your side hustle is a business, you may owe self-employment tax, which covers Social Security and Medicare. This is 15.3% of your net earnings. You can deduct business expenses to reduce your taxable income.
How do I file side hustle taxes?
Report your side hustle income and expenses on Schedule C. Deduct eligible business expenses like equipment, software, and home office costs. Keep accurate records and consider quarterly estimated tax payments if you owe more than $1,000.