Core Insights - Side gig income is fully taxable and treated as self-employment income by the IRS, requiring reporting if net profit exceeds $400 [2][7] - Taxable income is calculated on net profit after deducting ordinary and necessary business expenses, emphasizing the importance of good record keeping [3][5] - All income must be reported, regardless of whether a 1099 form is received, as personal records determine taxable profit [6] Tax Reporting - Side gig workers typically receive Form 1099-NEC or 1099-K, which reports gross payments, not net profit [4] - For example, if a worker earns $22,000 and incurs $7,000 in expenses, the net taxable income would be $15,000 [5] - Multiple 1099s from different sources should be combined on one Schedule C to calculate total net profit [6] Tax Obligations - Side gig income incurs both income tax and self-employment tax, highlighting the dual tax responsibility for gig workers [7]