iStock/ThinkstockA lot of people are doing the side hustle these days, working a second job — or more — in addition to their full-time career. But when it comes time to file your taxes, that extra money may cost you.
“We saw a lot of independent contractors — they either drove for Uber or they listed a property on Airbnb, and they’re getting for the first time income into their household outside of their W-2,” says certified public accountant Richard Lavina. “Little did they know at the time that they’ve got to pay a tax bill because there are no withholdings.”
Lavina says that means big changes to the way you file your taxes. And while you may have to pay more this year than you’d hoped to, you can plan ahead for next year.
“Organization’s key. If you know you’re going to be moonlighting throughout the year, it’s best to get with an adviser and estimate how much you’re going to be making off that contracting job and set up at least quarterly payments,” he says.
You can also find the forms for this kind of payment on the Internal Revenue Service’s website, IRS.gov.
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