I'm curious about my options dealing with multiple streams of side income.
I have a "real job" as a W2 employee that accounts for 95% of my income. For round numbers, let's say this job pays $100,000 a year.
For a few years I've also been earning a little side income in my sole proprietorship, let's say $3000 a year. This is reported on a 1099-NEC for Non-Employee Compensation. I have a federal ID number for this proprietorship and have been contributing a portion of this income into a SEP-IRA in my name.
In 2020, I've also started earning cash (paypal/online) income in a completely unrelated field, say another $1500 a year.
With the second income stream, can I call this the same sole proprietorship? I think because it's in a totally unrelated field, the answer is No? Do I need to establish a second sole proprietorship for this income, second Federal ID, etc?
And, whichever way it goes on the first question, can I contribute to the same established SEP-IRA with this second income stream? Or do I need to establish a second SEP-IRA in my own name identical to the first, but only with the contributions I can make based on the second stream (about half as much as the first)? I'd like to shelter a little bit of this income as I am hoping that it will grow in the future to become a worthwhile amount (although it will always be a sole proprietorship, there is no way this will ever become a business with employees).
Thanks!