How to report side hustle income — even if no 1099 form was issued.
How to Report Side Hustle Income (Even If You Didn’t Get a 1099)
If you run a side hustle, you must report side hustle income to the IRS — even if no one sent you a Form 1099. Whether you’re freelancing, driving rideshare, selling online, or doing gig work, all side hustle income is taxable. The IRS expects you to report every dollar, and failure to do so can result in penalties, interest, and a higher audit risk. For a complete overview of side hustle tax rules, see our guide Understanding Side Hustle Taxes: What Every Hustler Must Know.
What Counts as Taxable Side Hustle Income?
According to the IRS, all income is taxable unless explicitly exempt. That includes many types of side hustle income:
- Freelance payments from clients (even without a 1099)
- Gig work like Uber, DoorDash, Rover, TaskRabbit
- Online marketplace sales on Etsy, eBay, Amazon
- Digital content monetization (YouTube ads, Patreon, affiliate links)
- Cash transactions — yes, even “under the table” payments
Even if you didn’t receive a 1099-NEC or 1099-K, you must still report side hustle income. The IRS uses data-matching and other tools to identify unreported earnings. If you’re unsure whether your activity qualifies as a business or a hobby, read Is Your Side Hustle a Business or a Hobby in the Eyes of the IRS?.
Common 1099 Forms and Their Thresholds
Two main 1099 forms apply to side hustle income reporting:
- 1099-NEC: Issued by clients when they pay $600+ in a year.
- 1099-K: Sent by payment processors like PayPal or Venmo if you receive $600+ in transactions.
If you don’t meet these thresholds, you still must report all side hustle income. The IRS doesn’t care whether you received a form — only that you report every dollar earned.
How to Track Income Without a 1099
Keeping accurate records is key to correctly reporting side hustle income on your tax return:
- Separate Bank Account: Deposit all side hustle payments here to avoid mixing with personal funds.
- Income Log: Track dates, amounts, payment sources, and methods.
- Receipts and Screenshots: Save PayPal emails, Etsy transaction confirmations, and Venmo records.
- Tracking Apps: Use QuickBooks Self-Employed, Stride, or Everlance.
Where to Report Side Hustle Income
Use Schedule C (Form 1040) to report side hustle income and deduct eligible business expenses. This reduces your taxable income. You may also need to file Schedule SE to calculate your 15.3% self-employment tax. For deduction ideas, check out Top 7 Tax Deductions You Can Claim for Your Side Hustle in 2025.
Do You Owe Quarterly Estimated Taxes?
If your side hustle income means you’ll owe $1,000+ in taxes for the year, the IRS requires quarterly estimated tax payments:
- Q1: April 15
- Q2: June 15
- Q3: September 15
- Q4: January 15 (following year)
Pay online using IRS Direct Pay or EFTPS.gov.
Penalties for Not Reporting Side Hustle Income
Not properly reporting side hustle income can result in:
- Late payment penalties (up to 25% of unpaid taxes)
- Interest charges
- Increased IRS audit risk
Pro Tip: Don’t rely on whether a 1099 form was issued. Rely on your own accurate records.
Real-World Example
You earn $7,500 from Etsy and $3,000 from dog walking, but no 1099 forms are issued. You must still report side hustle income of $10,500 on your Schedule C. If you claim valid deductions, you’ll lower your tax bill. If you omit the income, penalties could cost far more.
Final Tips for a Clean Tax Filing
- Report all income — 1099 or not
- Use Schedule C to claim deductions
- Pay quarterly taxes if required
- Keep proof of all income and expenses
Need a full guide? Download our free e-book The Complete Guide to Building and Taxing Your Side Hustle Right — packed with examples, worksheets, and step-by-step instructions.
Disclaimer
Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as legal, tax, or accounting advice. Tax situations are often complex and highly specific to the individual or business. You should contact a qualified tax expert directly to discuss your particular circumstances. Nothing herein is intended to, nor does it, create an attorney-client or advisor-client relationship.
