Taxes on Side Hustle Income: Do You Have to File a Return? | Entrepreneur

A significant 36% of U.S. adults engage in side hustles, yet many lack understanding of tax obligations tied to their extra income. A survey reveals that 56% of side hustlers feel lost concerning tax reporting. Only 44.1% are fully aware of the tax implications for their work, while 32.3% know they need help. Misunderstandings can lead to costly mistakes, as an earnings threshold of $400 necessitates filing a tax return. Tax preparation assistance is crucial for those navigating this complex area during tax season.

"Even if you find yourself in a situation where you didn't set aside any money [for taxes], and now you're going to owe, still file as quickly as possible."

"Despite the rising popularity of side hustles, many earners feel lost regarding their tax obligations, highlighting a significant gap in knowledge and preparedness during tax season."

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