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With the increasing cost of living, many people rely on multiple income streams to get by.
While the extra money can be beneficial, its important to remember that you still have to paytaxeson it.
Here are some tips for how to file taxes if you have multiple income streams.
Also seesix types of income you might be surprised are taxed.
Youll want to work with a tax professional who has experience with your industry based on your situation.
You want to ensure that you find the qualified help required for such a complex matter.
Youll have to collect all the forms displaying this income generated throughout the year.
This process may take some time, but its crucial that you collect everything thats required.
For example, your photography or social media page couldve been a hobby that didnt really generate any revenue.
However, you may also discover that you made more than expected.
This is also the form where business expenses, such as a home office deduction, are reported.
Youll want to check out theofficial IRS guidefor clarity on this topic.
Another common income stream is investment earnings, which may supplement your salary at your day job.
Youll want to review all income streams outside of your day job to have everything in one place.
And with a side hustle or gig work, you could have possible deductions.
You could reduce your tax liability with these deductions, so its crucial that you keep track of everything.
Brummond elaborated on how you’ve got the option to handle this situation.
TheIRS has a detailed guideon taxable and nontaxable income if youre unsure about where you stand.
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