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Al-Nesha Jones, Intuit Top Accountant andForbes recognized CPA, founded theASE Groupto help small business owners thrive.
Consider summarizing your income by payment method, she suggested.
To help you keep up with your income documentation, Jones recommended keeping the system as simple as possible.
The key is to pick a system and a rhythm that works for you, she said.
Additionally, Jones stressed the importance of depositing side hustle income into a bank account thats solely for business.
Additionally, check with your clients to see to it that you receive any 1099s that they generate.
Federal income tax could range from 10% to 37%, she explained.
Self-employment tax, the employer and employee portions of Social Security and Medicare taxes, is 15.3%.
That means its important to set aside part of your side hustle income for taxes.
It doesnt take into account deductions or your Federal or state income tax rates.
It also gives you a few months to save up before you oughta make that tax payment.
A tax professional can also help you calculate your estimated payments.
Rushing through it under pressure can lead to mistakes and potential amendments later.
Caitlyn Moorhead contributed to the reporting for this article.
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