If you earn money from freelance work, consulting, gig platforms, or side projects, that income is generally taxable — even if you never receive a 1099. The IRS requires you to report all income, regardless of how or when you’re paid.

The good news is that side income also opens the door to valuable deductions. Expenses such as supplies, software subscriptions, mileage, home office costs, and professional services can often be deducted, helping offset the additional tax owed.

Tracking income and expenses throughout the year makes tax time much easier and helps ensure you’re paying only what you owe — not more. A tax professional can help you organize your records and maximize legitimate deductions tied to your side work.