Welcome to our #AskACPA feature, where we answer accounting, financial and business questions. Send us your questions at corporate@thecorporatesister.com.
Question: Should I report my side hustle income in my taxes?
The answer is yes! Any money you make through your side hustle is income, and should be added as such as part of your income taxes. Whether you babysit on the weekends, walk dogs every now and then, or freelance as a writer, in addition to your main job, the income you generate on the side should be reported.
If you hustle on the side by working for a company, and earn more than $600 in the course of the year, most likely you will get a taxable income form (1099-K or 1099-MISC) from the company outlining the amount of money you earned.
Your side hustle income affects your total taxable income, which is why it’s so important to track it. You can do this by opening a dedicated business checking or savings account, and setting money aside out of your revenue for taxes.
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