Tax Tips for Side Gigs

There are some important tips to remember if you work a side gig:

  • All income from these sources is taxable, including both full-time and part-time work and any cash payment received.
  • As a gig worker, correctly classify yourself as an employee or an independent contractor; this can depend on where you live, even for the same services.
  • Lastly, it’s important to consider paying quarterly taxes during the year to help avoid any federal or state tax penalties for underpayment.

*This information is not intended to substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov7

Footnotes and Sources

  1., January 12, 2023.