Side hustle - self employment tax

katewyllie — Tue, 24 Feb 2026 07:03:04 GMT

Does a person owe self employment tax (like Medicare contributions) if they are fully employed and have a side hustle?

Re: Side hustle - self employment tax

DashonnonH — Wed, 30 Aug 2023 19:57:11 GMT

Hello there, yes, you do owe self employment tax even if you are fully employed. If your side hustle pays cash or you receive a 1099nec or 1099misc you must report the income on Schedule C.

Basic filing requirement for Self-employed taxpayers:

You have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 and 1040-SR instructionsPDF.

If you Self Employed income is below $400 and you are required to file a tax return because of other income earned, then you are required to report the Self-Employed income as well because once we are required to file we must report ALL worldwide income earned.

You can see if you are required to file by referring to chart A, B, or C in the 1040pdf below.

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

Additional Resources for Self-employed

https://ttlc.intuit.com/turbotax-support/en-us/help-article/self-employment-taxes/self-employment-tax/L4sqoYLSY_US_en_US?uid=lly5q3

https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

topic Side hustle - self employment tax in Self employed

Side hustle - self employment tax

Re: Side hustle - self employment tax