Summer Jobs & Side Hustles: How to Track Your Income for Tax Time
Summer is a great time to earn extra money. Whether you’re working a seasonal job, freelancing, driving for a delivery service, selling products online, or starting a side hustle, keeping accurate income records can help make tax time much easier.
Even if you’re not thinking about taxes during the summer, tracking your earnings and saving your tax documents throughout the year can help you avoid surprises when it’s time to file your tax return.
Know How Your Summer Income May Be Reported
Depending on how you earn money, you may receive different tax forms.
- Form W-2: If you work as an employee, your employer generally reports your wages and tax withholding on a W-2.
- Form 1099: Freelancers, independent contractors, and others who earn certain types of income may receive a 1099 form.
- Form 1099-K: You may receive a 1099-K for certain payments received through payment cards, payment apps, or online marketplaces.
If you receive a tax form, keep it with your other tax records. You'll need accurate information from these documents when preparing your tax return.
Not Getting a Tax Form Doesn't Always Mean Your Income Isn't Taxable
One of the most important things to remember about summer jobs and side hustles is that income can be taxable even if you don't receive a tax form.
For example, you might earn money from freelance work, online sales, tutoring, lawn care, photography, or other independent work without receiving a W-2 or 1099. That doesn't automatically mean the income can be left off your tax return.
That's why keeping your own records is so important.
What Should You Keep Track Of?
Make it a habit to record your income and expenses as you earn money. Depending on your type of work, useful records may include:
- Payments and earnings
- Receipts for business-related expenses
- Payment app and online marketplace records
- Mileage and vehicle-related records when applicable
- Equipment and supplies purchased for work
- W-2s, 1099s, 1099-Ks, and other tax documents
A simple spreadsheet, bookkeeping app, or organized folder can help you stay on top of your records.
Stay Organized Now, Save Time Later
Tax preparation doesn't have to be stressful. The earlier you start tracking your summer income, the easier it can be to prepare for tax season.
Instead of trying to remember months of earnings and expenses at the end of the year, keep your records updated throughout the summer. Good recordkeeping can help you accurately report your income and identify potentially deductible expenses when applicable.
Ready for Tax Time?
Whether you're working a summer job or building a side hustle, IncomeTAX HUB can help you stay informed and prepared for tax season.
Keep track of your income. Save your records. Stay prepared.
This article is for general informational purposes only and is not tax or legal advice. Tax rules can vary depending on your individual situation.