
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.
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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.

Deductible going in, untaxed while invested and untaxed for qualified medical costs, with a 2026 limit and an eligibility test people skip.

A $1,000 credit can cut tax by $1,000. A $1,000 deduction saves only your marginal rate, and sometimes nothing at all.