How To File Taxes for Multiple Income Streams
Written by
Martin Dasko
Edited by
Jenna Klaverweiden
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According to the Bureau of Labor Statistics, more than 9.1 million Americans held multiple jobs in March 2025. With the increasing cost of living, many people rely on multiple income streams to get by.
While the extra money can be beneficial, it’s important to remember that you still have to pay taxes on it. The good news is that you don’t have to file multiple federal tax returns, as the IRS only requires one tax return per individual because your total tax bill is based on the amount of money you brought in.
Here are some tips for how to file taxes if you have multiple income streams.
Also see six types of income you might be surprised are taxed.
Find a Qualified Professional for Your Situation
If filing your taxes seems complicated due to multiple income streams, it could be a good idea to seek help.
“Stay away from the big chains that just put your numbers into their software,” said Kari Brummond, an accountant and content strategist at TaxCure. “Instead, look for a licensed tax professional who can help you with tax planning as well as tax preparation.”
You’ll want to work with a tax professional who has experience with your industry based on your situation. This means if you have a full-time job with a real estate side hustle or a freelancing business, you’ll want someone with expertise in these areas. You want to ensure that you find the qualified help required for such a complex matter.
Get Organized and Collect Income-Related Documents
The first step to filing taxes for multiple income streams is to get organized and ensure you have all the documents required to file your tax return. For example, if you worked a full-time job but delivered food on the weekend with Uber and invested in dividend-paying stocks for extra cash, you’ll want your income taxes to reflect this.
You’ll have to collect all the forms displaying this income generated throughout the year. These are some of the forms you’ll want to gather:
- Form W-2: This will come from your employer, showing how much you made and how much tax your employer withheld.
- Form 1099-K: This will reflect money earned from third parties and marketplaces, like Uber or Airbnb.
- Form 1099-NEC: This form will also report any income you made from a company where you’re not an employee and haven’t had taxes withheld. This is what freelancers and independent contractors receive. Since your taxes don’t come off your pay, you may be expected to make quarterly tax payments in the form of estimated taxes.
The official IRS website covers the possible forms you’ll want to collect before filing your tax return. In addition, the website specifically states that you’ll need to use sales receipts to report payments that aren’t on the forms mentioned above.
You’ll want to collect every document related to your income in the tax year so that you don’t incur penalties or fines. This process may take some time, but it’s crucial that you collect everything that’s required.
Figure Out Whether You Owe Taxes
You’ll want to determine whether your side hustle was a hobby or a legitimate income stream throughout the tax year. For example, your photography or social media page could’ve been a hobby that didn’t really generate any revenue. However, you may also discover that you made more than expected.
According to the IRS website, if a taxpayer’s earnings from self-employment were $400 or over, they need to file an income tax return. But those who made less than $400 may also need to file a tax return if they meet other requirements.
Collect Additional Information From All Other Income Streams
“Many taxpayers have business and self-employment income or loss and need to file a Schedule C,” said Andrea Harrington, a CPA and partner at Fiondella, Milone & LaSaracina. “This is also the form where business expenses, such as a home office deduction, are reported.”
You’ll want to check out the official IRS guide for clarity on this topic.
Another common income stream is investment earnings, which may supplement your salary at your day job. “Individuals with brokerage accounts, including cryptocurrency exchanges, can download their 2024 tax information from each institution where they have accounts on the institution’s website,” Harrington said.
If you own real estate, a Schedule E is for reporting rental income and deductions for expenses associated with the properties. You’ll want to review all income streams outside of your day job to have everything in one place.
Track All Activities and Accounts Separately
Brummond pointed out that you need to track income and expenses for each of your income streams separately. “For instance, if you run a graphic design business and also operate an Airbnb, you report both of those activities on different forms when you file your tax return, and you should account for them separately,” she said.
You may want to consider having separate bank accounts for each income stream to simplify the accounting process when you file your taxes. You don’t want to get confused by trying to use a freelancing software tool as an expense for your real estate side hustle.
Arrange Gains and Losses
Brummond recommended that if you have investments and business income on top of your day job, you should find ways to coordinate your gains and losses.
And with a side hustle or gig work, you could have possible deductions. You could reduce your tax liability with these deductions, so it’s crucial that you keep track of everything.
Brummond elaborated on how you can handle this situation.
“For instance, if your business has low income or a loss for the year, you may want to sell some of your appreciated stocks. Depending on your income, you may qualify for a 0% tax rate on the gains, or if you have a business loss, it can offset the gains. Alternatively, if you have a lot of income from one of your businesses, you may want to harvest investment losses at the end of the year — if you sell off investments at a loss, you can use up to $3,000 to reduce the taxable income for your business,” she said.
File Your Taxes
The final step is to file your annual tax return once you’ve organized everything and gathered your documents. You want to be certain that you’ve collected all of the forms for the income you generated and that you’ve arranged your accounts so that you have everything to file your federal tax return.
The IRS has a detailed guide on taxable and nontaxable income if you’re unsure about where you stand.
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