From Etsy to Only Fans: A No-Judgment Guide to Reporting Your Side Hustle Income

Selling crochet dragons on Etsy? Getting tipped for your spicy content on OF? Coaching clients on Zoom while your toddler eats Cheerios off the floor? Awesome. The IRS doesn’t care how you make your money, as long as you report it.

Today, we’re talking about getting your shit together to make sure your side hustle, whatever it is, doesn’t turn into a tax-time nightmare.

What Counts as Income?

You have to report income, so what counts? Basically, if you’re receiving money in your hands or bank account, it’s income. It’s that simple.

If you’re working with a platform like Patreon, TikTok, Etsy, or OnlyFans, you’ll trigger a 1099 if you hit $600 in earnings in a tax year. BUT, even if you don’t get a form from whatever platform you’re working on, that money is still taxable. Remember, if you sell, promote, teach, coach, or create something for money, it’s a business according to the IRS. Treat it accordingly.

Stay On Top of Your Finances!

It’s easy just to spend the money that comes in without tracking it. When you have a hundred bucks here and twenty there, you might not think of it as proper income. And hey, when you’re at the grocery store and those potato chips are calling . . .

Unfortunately, the IRS won’t see things the same way. Tracking your finances is essential if you want to avoid issues in the future. Here’s what you need to pay attention to:

Income: Track the money coming in separately from the platform you’re using. You don’t want to lose that data if something goes wrong.

Expenses: What are you spending on for your business? A camera? Platform fees? Props? All of these count as expenses and can ease the tax load a little via deductions.

Receipts: Take screenshots of anything you buy or save the paper receipts. It may seem boring, but if you’re ever audited, this collection will save you time and money, as well as stress.

If you really want to be smart, open a separate bank account and pop 20-30% of all your earnings in it. That will be your tax money, so you’re not surprised and scrambling to pay your bill come tax season.

Grab Your Secret Weapon . . . a Tax Pro

A tax pro is the perfect weapon to keep in your business arsenal. Let’s face it, keeping track of everything and trying to figure out what is deductible and what’s not can be confusing. Are those new nipple clamps deductible? What about a set of paint brushes? A tax pro can help you find all the ways you can save on your taxes.

With a tax expert on your side, you’ll ensure you get ALL the tax breaks and deductibles. You’ll also avoid surprises come tax time, which is always a good idea.

You’re not just doing “a little something on the side.” You’re running a business. It may not be a conventional side hustle, but whatever it is, take it seriously and file those taxes.

If you’re looking for no-judgment tax advice, Ask Anna Tax is perfect for you. I’m here to help you sort out your taxes and make sure you stay on the IRS’s good side, no matter where the money is coming from. Contact Ask Anna Tax today to learn more.