Taxes and Your Side Hustle: What You Need to Know

Extra income counts as taxable income. Keeping records is essential.

Track Your Expenses

You can often deduct the costs of running your side business, like equipment or home office space.

Estimated Payments

If you're making significant extra income, you might need to pay taxes quarterly to avoid penalties.

Keep it Separate

Consider opening a separate bank account for your side hustle to make bookkeeping easier at tax time.