Side Hustles Vs. the IRS

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If you have a side hustle where you make more than $400 a month you have to pay a self- employment tax. The IRS can now figure what YOU report as earnings and what the third parties report. If those numbers don't jive a computer is going to flag it. The IRS now looks at what you report and what you are actually spending. They can track all of this much easier now with new 2026 technology. It is smart to always ask for a 1099 not only for good receipt keeping but also so you know what the third party is telling IRS.