Did you pick a side gig recently? Maybe you need a few extra dollars for that big vacation you have planned or maybe you’re just trying to add a few extra dollars to your bank account.
As soon as the money starts flowing and the bank account starts to grow you may forget about the income taxes associated with this side gig. It can be quite easy to do because no one is withholding on your behalf. However, if you don’t pay attention you may be in for a big surprise come tax time. The question becomes how do I avoid the large tax bill shock?
Here a few tips to keep in mind:
1. Keep track of all income you receive even if you don’t receive a tax statement from whomever you are working for (i.e. Uber, Lyft, etc.)
2. Keep track of any expenses that you’ve incurred in order to create that income
3. Either request that your current employer withhold additional amounts from your paycheck or submit estimated tax payments on a quarterly basis directly to the IRS
4. Contact a tax professional who can provide valuable insight into your situation and provide an appropriate course of action
If you want to better understand your tax obligations associated with your side gig or methods for potentially avoiding a large tax bill contact Robinson Legal. We would be happy to discuss your unique situation and help you navigate the complexities. #robinsonltd