Core Insights - Side hustles are increasingly common in the modern economy, leading to new tax responsibilities that individuals may not fully anticipate until tax season arrives [2] - Understanding how to track, report, and maximize deductions for side income is crucial for compliance and minimizing surprises during tax filing [2] Taxable Income - Income from gig work, freelancing, or self-employment is generally taxable, regardless of the payment method used [3] - All business income must be reported, even if no 1099 form is received, as the IRS differentiates between business income and hobby income [4] Organization and Recordkeeping - Accurate recordkeeping is essential for reducing stress during tax season, including maintaining a log of all business-related income and expenses [5] - Common documents for recordkeeping include receipts, invoices, mileage logs, and proof of home office expenses [7] Technology and Tools - The IRS recommends keeping tax return records for three to four years, and digital bookkeeping tools can aid in tracking business transactions [6] - Financial professionals suggest leveraging technology for managing business revenues and expenses, with platforms like QuickBooks being highlighted for their effectiveness [6]