Side gigs have the potential to increase your income, but it’s essential to be aware of the tax implications that come with them. Many freelancers and gig workers may not realize how quickly earnings can accumulate or how small errors can lead to significant IRS challenges.
Here are seven surprising ways your side hustle could result in a tax nightmare and how to prevent them:
1. IRS Audits Are More Likely for Side Hustlers
Gig workers and small business owners face elevated audit risks compared to regular employees, especially if they frequently claim deductions or fail to report income.
To lower your risk, maintain detailed records of income and
