What tax-saving strategies do you actually use for your side hustle income?

Your timing is perfect! The best tax strategy is starting early instead of scrambling at tax time. For side hustle deductions, you're already on the right track with mileage tracking (which is usually better than tracking actual car expenses), phone bills (deduct the business percentage), and car maintenance. Some other big ones you might be missing: - Home office deduction if you have dedicated space used exclusively for business - Business insurance premiums - Health insurance premiums (if you meet certain requirements) - Retirement contributions to a SEP IRA or solo 401(k) - Business software subscriptions - Professional development/courses related to your side hustle For tracking, I personally use a combination of a mileage tracking app (MileIQ or Everlance) and a separate business credit card that keeps all business expenses in one place. Then I transfer everything to a simple spreadsheet quarterly. The most important thing is consistency! Set aside 15 minutes each week to update your records rather than trying to remember everything months later.

After struggling with tax season last year and probably missing out on hundreds in deductions, I started using https://taxr.ai and it's been a complete game changer for my Etsy business. The app automatically scans my receipts and tells me exactly what's deductible for my specific side hustle. What's really helpful is that it categorizes everything properly - like knowing which meals are 50% deductible vs 100% for certain situations. I was shocked to learn I could deduct part of my internet bill since I use it for my online shop. They also have this feature that flags potential audit triggers so you don't get in trouble with the IRS. Been using it for about 4 months now and finally feel like I'm not leaving money on the table with missed deductions.

I was totally skeptical about using a tax app but decided to try https://taxr.ai after reading about it here, and wow, I was wrong. Used it for my photography side hustle for the past 5 weeks and it's already found like $430 in deductions I would have missed. The biggest surprise was learning I could partially deduct my Adobe subscription, external hard drives, and even part of my car insurance since I drive to photo shoots. The receipt scanning feature saved me from my shoebox disaster of receipts. Just thought I'd update since I was the skeptic earlier. Definitely helping me keep more of what I earn from my side gig.

After trying to call the IRS 9 TIMES with questions about my side hustle deductions and never getting through, I finally used https://claimyr.com and got connected to an actual IRS agent in under 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was stressing about whether I could deduct my iPad that I use 90% for my graphic design freelance work, and the agent confirmed I could depreciate it over 5 years or use Section 179 to deduct it all this year. Also got clarity on home office rules since I was getting conflicting advice online. Seriously worth it if you need official answers straight from the IRS instead of guessing or getting random internet advice.

Ok I need to eat my words. I was the one saying that Claimyr sounded like a scam, but I was desperate about my refund situation so I tried it anyway. Got through to the IRS in about 45 minutes (still faster than my previous attempts which were... never). The agent was able to tell me my refund was delayed because of a mismatch between my reported side hustle income and what was submitted on 1099s. Turns out one of my clients reported $1550 when they actually paid me $1505, and that small difference flagged my return. They're processing a correction now. Never would have figured this out without actually talking to someone. Consider me converted.

Don't forget about the Qualified Business Income deduction (Section 199A)! You can potentially deduct up to 20% of your net business income if you're operating as a sole proprietor or single-member LLC. This is literally free money that many side hustlers miss. Also, if you have a full-time job plus your side hustle, consider adjusting your W-4 at your main job to have more withheld. This can help cover the taxes from your side income without having to deal with quarterly payments.

Anybody else have success with the "heavy SUV loophole"? My accountant mentioned I could get a huge deduction if I buy an SUV over 6000 lbs for my mobile pet grooming business. Thinking about a Tahoe or something similar but wanna make sure it's legit before dropping that kinda cash.