You pay income tax, not sales tax on the income that you earn as a "side hustle". You may have to pay sales tax, depending on the state that you live in if you're selling a product.
The IRS considers income from a "side hustle as self-employment income, and you will report the income on a Schedule C which is how you report your self-employment income. The good news is that you can deduct ordinary expenses that you incurred making this income. Follow the steps below to enter your income.
- Launch TurboTax
- In the search bar at the top, enter in Schedule C
- Select Jump to Schedule C
- Answer Yes on the next screen - Did you have any self-employment income or expenses?
- Answer the questions on each screen, when you get to the screen - Let's enter the income for your work, select Other self-employed income and Continue
- Enter the amount under cash or check
- Continue going through the screens to enter your expenses.
For additional information, review the TurboTax help articles: How does my side job affect my taxes? and How do I report income from self-employment?
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