Self-Employed How to Report Self-Employment Income When You Have Multiple Side Gigs Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Katharina Reekmans, EA Modified Jan 26, 2023 7 min read Millions of people have diversified the way they earn income and joined the gig economy. This could be a side gig to help them meet financial goals, running their own small business, a second job, or even multiple side gigs. Like any income, you must report income from your multiple sources or side gigs and file specific forms when you file your taxes. Don’t worry about reporting self-employment income from multiple sources and knowing which tax forms to report your self-employment income. TurboTax Self-Employed will easily guide you through reporting your self-employment income and deductible expenses. You can also jump-start your taxes by snapping a photo of your 1099-NEC that reports your self-employment income or importing your information from hundreds of financial institutions. Although TurboTax Self-Employed helps you easily report your self-employment income from multiple sources and your deductible business expenses, here is a breakdown of some things you should know about reporting self-employment income from multiple sources. Reporting Your Income If you received payments exceeding $600 from any one of your side jobs during the tax year a company or individual paid you, they should supply you with a Form 1099-NEC for the nonemployee compensation. The company or individual should also supply a copy of this form to the IRS to report your income. Under the American Rescue Plan, changes were made to Form 1099-K reporting requirements for third-party payment networks like Venmo and Cash App that process credit/debit card payments or electronic payment transfers. On December 23, 2022 the IRS announced a delay in reporting thresholds for third-party settlement organizations that will begin with transactions starting January 2023. Per the IRS, this means that for tax year 2022, if you accepted credit cards, debit cards, or prepaid cards and had over $20,000 in sales and more than 200 individual transactions through a third-party processor like PayPal or a rideshare platform you may also receive a Form 1099-K. Beginning January 1, 2023, a TPSO is required to report third-party network transactions paid with any participating payee that exceed a minimum threshold of $600 in aggregate payments, regardless of the number of transactions. TPSOs report these transactions by providing individual payee’s an IRS Form 1099-K, Payment Card and Third-Party Network Transactions.The transition period announced today delays the reporting of transactions in excess of $600 to transactions that occur after calendar year 2022 and the IRS will issue Form 1099-K to taxpayers who have more than $20,000 in payments from over 200 transactions processed in tax year 2022(the taxes you file in 2023). The transition period is intended to facilitate an orderly transition for TPSO tax compliance, as well as individual payee compliance with income tax reporting. A participating payee, in the case of a third-party network transaction, is any person who accepts payment from a third-party settlement organization for a business transaction. However, regardless of the amount (even if it’s less than $600) or if the payer did not send out the form, in general you still have to report your earnings on your taxes. The IRS requires you to report self-employment income if your net income (business income minus business expenses) from your business is $400 or more since you are also required to pay self-employment taxes on your net income. You may be wondering, “What if I was paid in cash or via a mobile payment service like Venmo?” If you were paid in cash or via a mobile payment service for your services you are still required to report your cash earnings as business income. Where are my earnings from my side gig reported? In most cases, if you have nonemployee compensation, your self-employment income and business expenses will be reported on a Form Schedule C which reports the profit or loss from your business and accompanies your Form 1040 when you file your taxes. When you complete your taxes with TurboTax Self-Employed, you will be asked simple questions about you and your business, and TurboTax Self-Employed will help you easily and accurately report your business income and deductible business expenses. How do you report income from different side gigs? If you have one or more side jobs, filing your taxes isn’t much different unless your jobs and sources of income are very different from each other. If they are very different, then you may need to attach multiple Schedule Cs to your tax return. For jobs that are in the same or similar line of business can typically be reported on one Schedule C. But don’t be too concerned about selecting the right number of Schedule Cs, TurboTax has you covered and will help you to properly report your income. For example, if you sell cake toppers on Etsy and also drive for a ridesharing company, you will have to report the income and expenses for those businesses on two separate Schedule Cs. However, if you sell cake toppers on Etsy and also have a business of making and selling cakes you could combine those businesses on one schedule C as these businesses overlap and can be in the same field of cakes and cake decorating. What expenses offset self-employment income? Sometimes your side hustle or business might not yield a profit after all of your business expenses are taken into account. Tracking your deductible business expenses is just as important as tracking your business income since your expenses directly related to your business can help lower your taxable business income and your self-employment taxes. After you have gathered all the 1099s, cash, and checks you may have received over the year, you will need to do the same for your expenses. Some common business expenses claimed on a Schedule C can include: Home Office Deduction Supplies Legal and professional fees Utilities Insurance Car expenses Travel Taxes and Licenses While these are some of the common expenses, the Form Schedule C has many other categories to help classify your expenses related to your business or side gig. TurboTax Self-Employed identifies industry-specific deductions directly related to your industry so you don’t forget anything, including many you may not be aware of. With QuickBooks Self-Employed, you can also track your business income, expenses, and mileage year-round and export the information directly to your TurboTax Self-Employed tax return at tax time eliminating data entry. What is self-employment tax? Everyone who earns income is required to contribute Social Security and Medicare taxes. When you work as an employee for a company, your employer withholds 7.65% of Social Security and Medicare taxes from your wages. Your employer then matches the 7.65% and sends the entire 15.3% of taxes to the IRS. However, 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. The self-employment tax rate is 15.3% and consists of 12.4% for Social Security and 2.9% for Medicare. Though all of your net income (profits) from the business are subject to the Medicare portion of the self-employment tax, only the first $147,00 of your net income is subject to the Social Security portion for tax year 2022 ($142,800 for tax year 2021). One thing to keep in mind, you are also able to deduct half of your self-employment taxes lowering your taxable income. When you file your taxes with TurboTax Self-Employed, your self-employment tax is automatically calculated based on your net profit (business income minus business expenses), and the deduction for half of your self-employment taxes is automatically calculated and put on the correct tax forms. We’ve Got You Covered Don’t worry about knowing these tax laws. TurboTax Self-Employed will ask you simple questions about you and your business and give you the business deductions and credits you’re eligible for. TurboTax Self-Employed identifies industry-specific deductions related to your specific business, including some you may not have even known you are eligible for. Meet with a TurboTax Expert who can prepare, sign and file your taxes, so you can be 100% confident your taxes are done right. Start TurboTax Live Full Service today, in English or Spanish, and get your taxes done and off your mind. Previous Post Self-Employed? Quarterly Tax Date Deadlines Written by Katharina Reekmans Katharina Reekmans is an Enrolled Agent and a contributor to the TurboTax Blog team. Katharina has years of experience in tax preparation and representation before the IRS. Her passions surround financial literary and tax law interpretation. She has a strong commitment to using all resources and knowledge to best serve the interest of clients. Katharina has worked as a senior tax accountant, operations manager, and controller. Katharina prides herself on unraveling tax laws so that the average person can understand them. More from Katharina Reekmans Leave a Reply Cancel reply Browse Related Articles Self-Employed I Only Received One Paycheck from My Summer Side-Gig. A… Self-Employed Self-Employed Tax Tips & Summer Jobs Self-Employed How to File Self-Employment Taxes (Understanding the Fo… Self-Employed A Parent’s Guide to NIL Self-Employed What is the Form 1099-NEC? 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