Here’s a number most people never hear until tax season: $400. That’s roughly the point where net self-employment earnings can trigger a federal filing requirement, even if no one sent you a form.

It surprises a lot of new freelancers, gig workers, and online sellers. The common belief is that small side income flies under the radar. In reality, the IRS generally expects it to be reported, whether it came from rideshare driving, reselling, consulting, or content creation. 💼

A few things worth knowing before you file:

• Self-employment tax is separate from regular income tax. It covers Social Security and Medicare, and it’s calculated on your net profit.
• Business expenses can lower that profit, but only if you track them properly.
• Quarterly estimated payments may apply if you expect to owe a meaningful amount for the year.
• State rules vary, so your return may look different depending on where you live.

None of this is meant to scare you. Most of the costly mistakes come from simple oversights, like mixing personal and business money or overlooking deductions you were entitled to claim.

There’s one often-missed step that can change how much of your side income is actually taxable, and it happens before you ever open a tax form. The full walkthrough covers it, along with the common mistakes to avoid. 👇