Side Hustle Tax Calculator
Calculate Side Hustle Taxes
Formula
Total Tax = Self-Employment Tax (15.3% of 92.35% of net income) + Federal Income Tax + State Tax
Frequently Asked Questions
Do I have to pay taxes on side hustle income?
Yes. All income over $400 from self-employment is subject to both income tax and self-employment tax (Social Security and Medicare). You should receive a 1099 form if you earn $600+ from a single payer.
What is self-employment tax?
Self-employment tax is the Social Security (12.4%) and Medicare (2.9%) tax that self-employed individuals pay. As an employee, your employer pays half; as self-employed, you pay both halves (15.3%). You can deduct half of this tax on your return.
Do I need to make quarterly tax payments?
If you expect to owe $1,000+ in taxes for the year, the IRS requires quarterly estimated payments (due April 15, June 15, September 15, and January 15). Failure to pay quarterly can result in underpayment penalties.
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