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topic
Side Hustle Taxes
"I made money on the side. What does the government want from me?"
in plain english
If you earned it, the IRS counts it — even cash, tips, and Venmo.
The tax code starts from a wide net: pretty much every dollar you receive is income unless a specific rule carves it out. Selling crafts, driving rideshare, freelancing — all of it counts. Once you cross small thresholds, the platforms paying you are required to tell the IRS too.
The twist: as a 'self-employed' person you also owe an extra 15.3% self-employment tax on top of regular income tax, because nobody is withholding Social Security and Medicare for you. The good news is you can subtract real business expenses first.
in the margin
- Gross income
- Every dollar you receive before subtracting anything.
- 1099-K
- A form payment apps send when you cross a sales threshold.
- SE tax
- Self-employment tax — Social Security + Medicare for the self-employed.
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eCFR26 CFR § 1.61-1
Gross income defined
Income means money from any source, period — unless the law specifically excludes it.
Source: Code of Federal Regulations
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