Friends with Tax Benefits: So You’ve Got a Side Hustle?

There are many reasons you may find yourself exploring the world of side hustles. You may need the extra cash to help pay the bills at the end of the month, or you may be itching to start your own business. Many times, people may find themselves earning extra cash and not realizing that they are, in fact, starting a self-employed business! Did you know that if you’re making $400 or more in income, you’ll need to report this come tax time?

The flip side to this is that as you invest in this side hustle (think mileage if you’re a rideshare driver or buying tools if you’re putting together Ikea furniture), you can likely deduct these expenses on your tax return. Our Friend’s number one tip is to keep records of all of your purchases and income. Documentation is going to help make your taxes easier and also give you a clear picture of your side hustle. Which, who knows… maybe one day will be your main hustle?

 If your goal is to take it to the next level, think about how you’re going to stand out in the crowd. What is your personal brand? In other words, what are the unique parts about you that might help you win an edge in your business?

Maybe your hustle is not a unique talent, but instead your willingness to do the task. Like hauling furniture or removing debris. If you find yourself in a crowded field, consider ways you can win business (for example, can you just be the MOST responsive Ikea furniture builder?).

Join us weekly as our hosts, Lauren Thomas, Katharina (Kat) Reekmans, and Daniel Thrall, tackle the big money topics and get real about taxes. Believe it or not, these friends know how to make personal finance fun.  

If you have a tax question for our resident tax expert, Kat, submit your question in the comments, and it could be answered in a future Friends with Tax Benefits episode!

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The views, information or opinions expressed during the Friends with Tax Benefits podcast series are solely those of the individuals involved and do not represent those of Intuit, TurboTax or any of its brands. The primary purpose of this podcast series is to educate and inform. This podcast series does not constitute financial, legal or other professional advice or services.