The Peck Group, LC
  • Comprehensive Tax Law Representation Since 1995

    We handle every aspect of tax law: preparing tax returns, representing clients during audits, resolving IRS and state tax controversies, and creating tax planning strategies for the future.

  • Problems With The IRS Or State Tax

    Our attorneys are committed to providing efficient and effective tax solutions for individuals and businesses in Georgia and nationwide.

  • Planning For The Future

    Our lawyers help individuals and businesses with all aspects of estate and tax planning. We help our clients use proactive strategies to minimize tax implications in the future

  • Changing The Balance Of Power

    Does it feel like the government has all the power? Taxpayers have rights, too. We use our knowledge of tax law to shift the balance of power and ensure that your rights are protected.

  • Tax Solutions … And Peace Of Mind

How to report extra income from side gigs

You’ve been working at your regular, full-time job for a few years now. This year, you decided to use your free time to earn a little extra income. So you started marketing yourself as a freelance consultant for local businesses in your area. The money you earn from this work allows you to treat yourself to a well-deserved vacation or establish a rainy-day fund.

Then tax season rolls around. You scan through your 1040 and realize you’re not sure how to categorize this additional income.

Is it a side gig or a second job?

Your extra income can fall under one of two categories on your tax return: Other Income (line 21 on Form 1040) or Self-Employment (for which you need to complete Schedule C and perhaps also Schedule SE, if applicable). How do you know which applies to you?

The IRS considers you to be self-employed if:

  • Your main motivation in doing the work is to make a profit (regardless of whether you actually do) and
  • Your work is regular, frequent or continuous.

If the work you’re engaged in is too sporadic to meet the above classification, then you can report these earnings as other income.

A note on miscellaneous income

It’s worth noting that in addition to money you earn from a hobby or occasional work, you also need to report non-monetary earnings. For instance, if a company pays you with property or services, this still counts as income that’s reportable to the IRS.

Additional paperwork

Regardless of whether your extra income comes from a side gig or a second job, if the company that contracted you paid you more than $600 in the tax year, they should send you a form 1099-MISC—which you will use to file your tax return. If you do not receive this form by January 31, contact the company to inquire about its status.

Additional sources of income can make your tax situation more complicated. To ensure you don’t report your earnings incorrectly, it’s worth having an experienced tax attorney prepare your tax return for you.

No Comments

Leave a comment
Comment Information
Email us for a Response

Talk to an Attorney

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

The Peck Group, LC
5855 Sandy Springs Circle N.E., Suite 190
Atlanta, GA 30328

Phone: 770-884-6914
Fax: 770-933-2369
Atlanta Law Office Map

Payment Cards