Whether you’re working your side hustle or working your business full-time, issuing 1099s is a crucial, yet often overlooked aspect of running a small business. Can you really afford to ignore your obligation? It’s a pretty expensive mistake.
Everyone has a side hustle these days. Earlier this year, Bankrate released a report claiming over 44 million American adults are earning money outside of their main source of income.
Of course, I’m one of them. I started freelance writing as a side hustle in October of 2015 and turned it into a full-time gig ten months later.
Maybe you’re considering a freelancing to save for a big purchase, pay down debt, or just pursue a passion you hope to eventually take full-time.
Unfortunately, many people don’t consider the financial aspects of the side hustle until they’ve made a few mistakes. Whether your freelance work earns just a few dollars a month or a several thousand, tracking your profits and paying taxes are non-optional. Here are a few essential steps to get started on the right foot.
It’s been a busy few months around here. My family moved from Phoenix, Arizona to Omaha, Nebraska to be closer to my family and experience seasons once again. We bought a very neglected 60-year old house in an awesome neighborhood. It’s already proving to be a money pit, but we’re excited to fix it up and make it our forever home.
We started thinking about moving to Omaha nearly two years ago when we visited my family during Halloween. The autumn weather, real pumpkin patches (as opposed to dozens of trucked-in pumpkins tossed on the desert floor with a few hay bales thrown in for aesthetics), and trick-or-treating in the neighborhood my dad grew up in made us long for a place that felt more like home.
Although we loved our little home in Phoenix, we were never fans of Arizona. Brian grew up in the mining town of Elko, Nevada and I grew up in Las Vegas. We met in Reno before moving to Phoenix for four years. Despite all of this, both of us feel “at home” here. For me, it’s because my dad grew up here – lives in the house he grew up in, in fact. I visited my grandparents here often. My parents, two of my brothers, my sister, and nephew are all here, within a five-minute drive. Brian enjoys the cooler weather, trees, and short commute.
So when Brian saw that an ad agency here in Omaha was looking for a new Art Director, he applied and landed the job.
Brian’s relocation for a new job means we’ll get to take advantage of the tax deduction for moving expenses. My freelance writing business moves with me. It got me thinking about whether digital nomads can benefit from the tax breaks for moving, so I wrote about it for Forbes last month.
Give it a read and let me know: What’s the last big move you made and why?
Image credit: Dominik Lange via Unsplash