Fact checked by Vikki Velasquez Alistair Berg / Getty Images Filing taxes for your side hustle is easier with a little organization and the right forms Key Takeaways Side hustle earnings are taxable and must be reported, even without a 1099 form. Self-employment tax covers Social Security and Medicare contributions. Organized recordkeeping helps maximize deductions and accuracy. You may qualify for valuable tax breaks like the QBI deduction. Planning ahead can help prevent penalties and simplify ...

Core Insights - The IRS has penalized American taxpayers over $162 million for falsely claiming tax credits, often influenced by misleading online advice [1] Group 1: Tax Misconceptions - Misleading tax advice from social media influencers and scammers has become common, making fact-checking essential to avoid legal issues [1] - A popular misconception is that receiving a raise leads to a higher overall tax burden, which is a misunderstanding of the U.S. progressive tax system [4][5] Group 2: Tax Strategies and Legalities - The "Overseas Zero Tax Strategy" suggests that moving to different countries can legally avoid income taxes, but U.S. citizens must report all income earned abroad [3][4] - Claims of writing off personal expenses as business deductions are often illegitimate; the IRS requires that deductions be "ordinary and reasonable" [6][7]