🐝 Self Employment Tax Calculator
💼 Income Sources
When you have a side hustle, your budget gets complicated because you are mixing pre-tax and post-tax income. Up to 36% of Americans now make money through side hustles, pulling in an average of $900 a month. As Erin Confortini puts it, the biggest difference in your budget is distinguishing between the two. You can't just add gross revenue to your monthly spending plan, because that side hustle money hasn't been taxed yet.
✂️ Tax Deductions
Track any expenses required to run your side hustle to lower the amount of revenue you actually owe taxes on. It helps to separate direct cash expenses from shared personal costs.
Let's say you write off a portion of your rent because you work from home. That is a shared deduction. Direct costs are things like business software or supplies that actually consume your side hustle cash.
🏛️ Tax Planning
Once you subtract your deductible expenses from your side hustle revenue, multiply that net number by your tax percentage to find out exactly how much cash to set aside.
As Erin Confortini explains, her revenue minus her expenses times her tax percentage gives her the amount of money that she should be setting aside for taxes. The leftover amount safely flows into your personal budget.
📊 Results
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Calculator updated by heyfinfam (v26.8.5) · View history
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