Earn extra money, and keep more of it at tax time
Twelve side income ideas that can pay within days, plus the 2026 tax rules gig workers need: self-employment tax, quarterly payments, new 1099 thresholds and deductions.
12 side income ideas that can pay quickly
Earnings depend on your city, hours and demand. Read each platform's pay and fee terms before you sign up.
Rideshare driving
Drive passengers on your own schedule.
- Paid
- Weekly; instant cash-out often available for a fee
- Start-up cost
- Low if you own a qualifying car
- You need
- Eligible car, license, insurance, background check
Food delivery
Deliver restaurant orders by car, bike or scooter in many cities.
- Paid
- Weekly or instant for a fee
- Start-up cost
- Low
- You need
- Vehicle or bike, smartphone
Grocery shopping
Shop and deliver groceries for app customers.
- Paid
- Weekly or instant for a fee
- Start-up cost
- Low
- You need
- Car, smartphone, patience in crowded stores
Package delivery
Deliver packages in blocks of a few hours.
- Paid
- Usually weekly
- Start-up cost
- Low
- You need
- Car with space, smartphone
Freelance writing or design
Sell skills to businesses on freelance marketplaces or directly.
- Paid
- Per project; platforms may hold funds briefly
- Start-up cost
- Low
- You need
- A portfolio and a computer
Virtual assistant
Handle email, scheduling and admin work remotely.
- Paid
- Weekly or per project
- Start-up cost
- Low
- You need
- Reliable internet, organization
Online tutoring
Teach school subjects, test prep or languages over video.
- Paid
- Weekly or per session
- Start-up cost
- Low
- You need
- Subject knowledge, webcam
Pet sitting and dog walking
Care for pets through apps or neighbors.
- Paid
- Per booking
- Start-up cost
- Very low
- You need
- Reliability and references
Babysitting
Evening and weekend childcare is always in demand.
- Paid
- Usually same day
- Start-up cost
- Very low
- You need
- Experience; CPR training helps
Tasks and handyman work
Assemble furniture, mount TVs, help people move.
- Paid
- Per task
- Start-up cost
- Tools you may already own
- You need
- Basic skills, transportation
Sell unused items
Clear out electronics, furniture and clothes.
- Paid
- When the item sells
- Start-up cost
- None
- You need
- Photos and honest listings
Resell finds
Buy underpriced items at thrift stores or sales and resell them.
- Paid
- When items sell
- Start-up cost
- Money for inventory
- You need
- An eye for value, storage space
Count your costs. Gas, maintenance, phone data and platform fees all come out of what you earn. The calculator below shows what's left after costs and taxes.
How much should you set aside for taxes?
A quick federal estimate for self-employment income. It doesn't include state tax or every deduction you might qualify for.
Gig tax set-aside calculator
Use totals for the year, or for one month to plan monthly.
- Mileage deduction$0
- Net profit$0
- Self-employment tax (15.3%)$0
- Estimated federal income tax$0
- What you keep after tax$0
Self-employment tax is figured on 92.35% of net earnings. Income tax here uses your bracket on profit minus half of SE tax; other deductions and credits may lower it. Check with a tax professional.
Gig tax basics in four numbers
When you work for an app or yourself, no one withholds taxes for you. These are the rules that matter most.
$400
If your net self-employment earnings are $400 or more, you generally must file a return and pay self-employment tax.
15.3%
Self-employment tax covers Social Security (12.4%) and Medicare (2.9%), on top of income tax.
$1,000
If you expect to owe $1,000 or more when you file, you generally need to make estimated payments during the year.
All
All income is taxable, even if you never get a 1099 form. Track what you earn and spend as you go.
2026 estimated tax due dates
Pay online through IRS Direct Pay or your IRS Online Account. Paying late can mean penalties even if you get a refund later.
What changed for 1099 forms
The One Big Beautiful Bill Act, signed July 4, 2025, changed when businesses and payment apps must send you a 1099. It didn't change what's taxable.
Threshold rises to $2,000
- Before$600
- For payments made in 2026$2,000
- From 2027Adjusted for inflation
Back to $20,000 and 200 transactions
- Planned threshold$600
- Restored thresholdOver $20,000 and over 200 transactions
- AppliesRetroactively
No form doesn't mean no tax. You must report all business income on your return, whether or not a platform sends you a 1099. Apps may still send one below the threshold.
The "no tax on tips" deduction
For tax years 2025 through 2028, eligible workers can deduct up to $25,000 of qualified tips from federal taxable income.
Despite the name, tips are still taxable income. The deduction lowers federal income tax only; Social Security, Medicare and possibly state taxes still apply.
- Up to $25,000 per returnYou can claim it whether you itemize or take the standard deduction.
- Only in tipped occupationsThe IRS lists occupations that customarily receive tips, including rideshare drivers and food delivery workers.
- Voluntary tips onlyAutomatic gratuities and mandatory service charges don't count.
- Limited for the self-employedThe deduction can't exceed your net profit from the business where you earned the tips.
- Income limits applyIt phases out above $150,000 of modified AGI, or $300,000 for joint filers. Married filing separately doesn't qualify.
Common deductions for gig workers
Only the business share of a cost is deductible. Keep receipts and logs.
Vehicle
Use the standard mileage rate, 72.5¢ a mile for January to June 2026 and 76¢ from July 1, or actual costs. Log date, miles and purpose for each trip.
Phone and internet
Deduct the percentage you use for work, such as the share of your phone plan used for delivery apps.
Supplies and equipment
Insulated bags, phone mounts, software, tools and other items used for the work.
Platform fees
Service fees and commissions the platform takes from your earnings.
Home office
Only for space used regularly and exclusively for your business, such as a freelancer's dedicated desk area.
Half of SE tax and health insurance
You can deduct half of your self-employment tax, and self-employed health insurance premiums if you qualify.
Side-hustle scams to avoid
If a job asks you to pay to work or to move money for someone, it's almost certainly a scam.
- Fake checks and overpaymentsYou're sent a check, asked to deposit it and send part back. The check bounces later, and you owe the bank.
- Reshipping packagesReceiving and forwarding goods bought with stolen cards can involve you in fraud.
- Pay-to-start "starter kits"Real employers don't charge you for training, equipment or certification to get hired.
- "Task" jobs that need crypto depositsApps that pay you to rate products, then ask you to deposit money to unlock earnings, are a common scam.
Report job scams at ReportFraud.ftc.gov.
Earning and tax questions
Can't find yours? Ask our team.
Do I have to pay taxes on side hustle income?
Yes. All income is taxable. If your net self-employment earnings are $400 or more, you generally must file and pay self-employment tax, even if you don't receive a 1099.
How much of my gig income should I save for taxes?
Many people set aside 20% to 30% of net profit, depending on their tax bracket and state. Use the calculator on this page for a federal estimate.
Will I get a 1099-K from a payment app?
Payment apps and marketplaces generally must send a Form 1099-K only if you receive more than $20,000 and more than 200 transactions in a year, though some send one below that. Your income is taxable either way.
What is the 2026 IRS mileage rate?
For business driving, 72.5 cents per mile from January 1 to June 30, 2026 and 76 cents per mile from July 1, 2026, after the IRS raised it mid-year.
Are tips from delivery and rideshare apps tax-free now?
Not completely. For 2025 through 2028, eligible workers can deduct up to $25,000 of qualified tips from federal income tax, but tips are still subject to Social Security and Medicare taxes.
Waiting on your first payout?
If a bill can't wait, compare offers for $200 to $5,000 and see the real cost first. Free to submit, no obligation.
Sources
- IRS: Gig economy tax center
- IRS: Self-employment tax
- IRS: Estimated taxes
- IRS: Standard mileage rates
- IRS: 1099-K threshold reverts to $20,000 (IR-2025-107)
- IRS: One, Big, Beautiful Bill provisions
- FTC: Job scams
This page is general education, not financial, legal or tax advice. Rules and rates change; check the source or a qualified professional before making decisions.
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