Author Topic: Side Hustle Taxes  (Read 1143 times)

tduff311

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Side Hustle Taxes
« on: December 05, 2017, 04:12:09 PM »
So my wife started a new side hustle this year as a photographer. We weren't sure if it would pan out but, as it turns out, she is doing fairly well so far and there's promise of more.

So, my question: should we establish this formally as a business?

We only played this on the side with modest seriousness, but now it's evident it is more.

The first thing we are looking at is upgrading her PayPal personal account to a business account and using the API to permit more business options, such as connecting her photo online business account to more delivery options for her products.

If you agree that becoming an 'official' business is the way to go, what are the steps/items to check off in doing this?

I am a Federal employee and do all of our family taxes, but I have little experience in the business side, and her knowledge and experience is less on the topic.

Thanks!

ps We are concerned that the taxable increase in our family income will cause the loss of some pretty serious medical assistance my 6 year daughter receives for her genetic medical disability.

pmac

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Re: Side Hustle Taxes
« Reply #1 on: December 08, 2017, 07:16:57 AM »
I would establish an LLC for her, that limits her liability with the photography business.

Also, establish an individual 401k. She can contribute a lot of money into that from her side business. Helps to save for retirement, plus keep your AGI low.

 

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