How to Track Side Hustle Income for Taxes

A simple way to track side hustle income and expenses through the year and set money aside for taxes. Educational only, not tax advice.

Educational only, not tax advice. Tax rules depend on your situation and change over time. Check IRS.gov or a tax professional for what applies to you.

1. Keep it separate

A separate bank account or card for side income and costs makes records much easier.

2. Log every payment

Record date, source, amount and any platform fees, even small or cash payments. Platform forms (like a 1099) may not cover everything, so keep your own log.

3. Log expenses with receipts

Note the date, what it was for and the category, and keep the receipt or a photo of it.

4. Set money aside each time you get paid

Many people move a fixed percentage of each payment to savings for taxes. In the US, self-employment income may owe self-employment tax on top of income tax. The free side hustle tax set-aside calculator gives a rough estimate.

5. Review quarterly

Check totals every quarter. The IRS has quarterly estimated tax payments that may apply to you; see IRS.gov for current rules and dates.

A ready-made log: the Side Hustle Income Tracker records income, fees and expenses, shows net profit by month and quarter and a set-aside at the percentage you choose ($6, not tax advice). It is also in the Money Planner Bundle.

Questions

Do I need to report small side hustle income?

Rules depend on your situation. In the US, check IRS.gov or a tax professional; keeping a full record helps either way.

How much should I set aside for taxes?

It varies by income, location and deductions. The free calculator gives a rough planning estimate, not a tax figure.