Experts Walk You Through the Potential Tax Pitfalls of Seasonal Holiday Side Gigs

Let’s talk tax! I had the opportunity to connect with Yahoo Finance to discuss filing requirements for those engaged in a holiday side-hustle.

“For individuals with seasonal work and those active in a gig economy, it is important to review earnings and eligible deductions to determine if filing a tax return is even necessary, said Adam P. Scherer, CFP, MS, IRS Enrolled Agent and founder of Greenbeat Financial. “In 2021, the threshold at which self-employed individuals must file a tax return is $400 of net income (i.e., income after deductions are applied),” he continued.

However, taxpayers who qualify for a tax refund or wish to claim refundable tax credits such as the Earned Income Credit, American Opportunity Tax Credit, or CTC, will want to file a return in order to receive that money, Scherer pointed out.

For more tax preparation and tax planning insights, you are welcome to connect with me on a free 30-minute introductory call.

Wishing you safe travels through this year’s tax season!