As with all forms of income, you will need to pay taxes on any money you make from your part-time self-employed job. If the main reason for your side job is to turn a profit, and the work is regular and continuous, then you qualify as self-employed for tax purposes. If you are self-employed, you can pay your taxes by filing Schedule C, or Schedule C-EZ if you earn less than $5000 per year from your side job.
If you earn more than $600 per year, you will also need to fill out a 1099-K form or 1099-MISC form which allows you to log any income made from your side job.
If you have earned money from renting property, then you will need to report this income using a Schedule E. If you owe more than $1000 in taxes, you have to file quarterly estimated tax payments. To do this, you will need to fill out Form 1040-ES. Estimated tax can be paid through the mail or online using the Electronic Federal Tax Payment System (EFTPS). This can be found on the IRS website.
Like full-time self-employed workers, those with a side job can use allowable deductions to reduce their tax bill. If you can prove that an expense is being used solely for your business, then you can deduct the cost from your tax bill. Deductions frequently expensed by part-time self-employed workers include:
- Space in your home used exclusively for business
- Car-related expenses that are exclusively related to business (mileage, gas charges for rideshare drivers)
- Tools or equipment required for the job
More information on what expenses can be deducted by a self-employed worker filing taxes can be found on the IRS website.