Summer Side Hustles: What You Need to Know About Taxes Before You Start

Summer is the season of extra income — babysitting, DoorDash, lawn care, tutoring, braiding hair, photography, Airbnb hosting, you name it. But before you jump in, it’s important to understand how taxes work so you don’t get surprised next April.

Here’s what every summer side hustler should know.

1. If You Earn Money, It’s Taxable — Even Cash

Whether you get paid through Cash App, Venmo, Zelle, or straight cash, the IRS considers it income. If you earn $600 or more, you may receive a 1099NEC or 1099K, but even if you don’t, you still must report it.

2. You Can Deduct Expenses

This is where you save money. Common deductions include:

• Supplies

• Mileage

• Equipment

• Software

• Marketing

• Home office

If it helps you earn money, it’s likely deductible.

3. You May Need to Pay Quarterly Taxes

Side hustles don’t withhold taxes. Setting aside 25–30% of your income keeps you safe from penalties.

4. Keep Your Records Organized

A simple system works:

• Separate bank account

• Track income

• Save receipts

• Log mileage

What This Means for You

A summer side hustle can be a blessing — just treat it like a business. If you want help setting up a simple system, RLA can guide you.