In the US, the “gig economy” is taking off at lightning speeds.
In 2019, many people around the world are using side jobs or hobbies as a means of increasing their income. This begs a few questions, one of which surrounds the ever-looming threat of the IRS. While it’s not incredibly common, many people do get into trouble for not treating their side jobs the way the government expects them to.
Finding a good side job is hard enough, so keeping it and not making it cost you is important. The most important thing to remember is that if you make any form of profit, you are legally obligated to report it. There are also a few guidelines you should follow to ensure that the job is even worth it.
First of all, evaluate the financial risks involved with your activities. Make sure you aren’t doing something that will waste your time without gaining a profit. You need to know your startup costs before you try to get started. After that, you need to measure your progress over the course of months or years. At some point you will need to get your business registered, at which point you should follow IRS guidelines, which you can find on their site under “Recommended Reading for Small Businesses.”
No one said starting a business, or even a side job, is easy. The authorities will always want to know about any money you are making, and it is important to oblige them if you want your side job to turn into a success, as opposed to a liability.