
Side Income
Side Income and the Tax You Owe on It
Side income can face income tax and 15.3% self-employment tax. A $14,000 example shows why setting aside 25% is only a starting point.
4 min read
2 plain-English reads on budgeting, saving, investing, debt, credit and taxes. Newest first unless you say otherwise.

Side income can face income tax and 15.3% self-employment tax. A $14,000 example shows why setting aside 25% is only a starting point.

Budget on your lowest month, not your average. Seven of twelve months fall below an average, and on one freelancer's real year, budgeting on it would have spent the tax money exactly.
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