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
- IRS.gov, January 12, 2023.