TAXES | Side Hustles
For decades it was defined as moonlighting. Today, it’s called a side hustle.
A recent study by Bankrate.com reports 45% of Americans earn money outside of their full-time job. On average, they work about 12 hours a week earning $1,122 per month.
Technology reduced the friction associated with finding, completing, and being paid for work outside the traditional employee-employer relationship. Most of these part-time employees work through websites that help both facilitate and regulate transactions. Some people drive in their spare time for Uber or Lyft. Others find freelance work on websites like Upwork.com.
With almost half of Americans earning money on the side, it is very likely you have friends, family, or neighbors who are participating in this growing part of our economy.
A side hustle can be a great way for someone to leverage skills, experience, or other resources (like time) to generate extra income. Side hustles can also help provide a transition from full-time work to retirement. Side hustles can be extremely convenient, and beyond earned income they can create some tax management opportunities; however, they can also create some tax management headaches.