Here's How to Manage Taxes for Your Summer Side Hustle

Whether you Uber or Lyft, Postmates or Doordash, "gig work" is a great way to earn income. If that earned income totals $400 or more, it is also required to be reported on a tax return.

One reason this income needs to be reported is because workers must pay tax on it. Those who do gig work as employees will have that tax withheld from their paychecks. Those who do gig work as independent contractors may need to pay estimated taxes. If you aren't sure which category you fall under, you can check your worker status.

As a gig worker, it is important for you to keep track of your income and expenses throughout the year. Save receipts for any money you spent to complete these gigs (like gas) and keep a record of any income you receive from your gig work so that nothing goes unreported.

When it comes to filing your tax return, you may receive any one of the following forms from the business(es) you work with: W-2, 1099-NEC (nonemployee compensation), 1099K (payment card and third party network transactions), or 1099-MISC (Miscellaneous Income). You should look for these in your mailbox around January 31st.