If you’ve been thinking about picking up a side hustle or already have one, you’re not alone. About one in twenty American workers has more than one job right now. Thanks to freelance platforms, it’s easier than ever to jump in and start making extra income.
Some side gigs pay more than others, but with just a few hours a week, you could earn over one hundred dollars a day. Roles like digital marketing strategist, web designer, video editor, and even songwriter are topping the list. If you’re good at what you do or are willing to learn fast, there’s real earning potential.
But most people don’t think about taxes until it’s too late.
When you’re picking up side gigs on your own, you’re not getting a paycheck with taxes withheld. That income is usually considered 1099 income, and that means it’s your responsibility to track it, report it, and in many cases, pay estimated taxes throughout the year.
The good news is this doesn’t have to be stressful. If you’re taking on extra work, especially if you’re being paid through platforms like Fiverr or directly by clients, you just need a system in place. Track what you’re making. Know what you owe. And set aside what you’ll need to pay.
If you’re not sure how much that should be or whether you should be making estimated payments because you aren’t doing any bookkeeping, that’s where we come in. We can help you manage your records and figure out what you need to stay on top of things to avoid surprises at tax time.
Contact us anytime to support your business’s bookkeeping needs. We can be reached at 310-534-5577 or contact@abandp.com. My team and I are ready to assist you!
