5 Popular Side Gigs That Cross the $600 Tax Reporting Threshold
Written by
Travis Woods
Edited by
Rebekah Evans
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It doesn’t take much in the way of earnings to catch the attention of the IRS. Whether you work a part-time job or simply a side hustle, once you earn more than $600, you’ve got to report your income to the IRS and begin paying taxes.
It’s important to be careful: even the most casual of side gigs can take you across the $600 tax threshold and knowing which are most likely to do so can keep you out of trouble with the IRS. Here are some of the most popular hustles that can easily hit that $600 level.
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Rideshare Driver
Getting behind the wheel for rideshare platforms like Lyft and Uber can very quickly add up: just a few weekends of driving monthly can earn you $600 and trigger the tax Form 1099 required by freelance workers. To be specific, according to ZipRecruiter, rideshare drivers can easily make $3,660 a month.
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Food Delivery Driver
Similarly, an app like Uber Eats or Doordash can keep you busy enough making frequent food deliveries that you easily earn $600 quickly, especially during busy seasons like the holidays. Per ZipRecruiter, food delivery drivers make $3,198 monthly, surpassing the $600 threshold.
Freelance Creative Work
Whether you’re writing copy or working on graphic design projects, freelance creative gigging (either for direct clients or via freelance platforms) can be fairly lucrative — meaning a 1099 is usually in your future. ZipRecruiter showed part time freelance creative workers can make over $6,000 monthly.
Selling Items Online
While it may not seem like a side gig, selling items online via websites like eBay or Etsy can also generate taxable income and, depending on what you can sell, can easily hit $600 or more in profits. Per Customcy, Etsy sellers make an average of $2,965 per month.
Short-Term Rentals
Using Airbnb to rent out a room, a garage or your entire home for a weekend? That can clear $600 quickly, triggering your 1099 and the attention of the IRS. Airbnb hosts made a median of $2,408 monthly, according to AirDNA.
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