Annual Revenue
$120,000.00
Annual Expenses
$96.00
Taxes Owed
$6,000.00
Net Profit
$113,904.00
How it works
The Side Hustle Income Tracker calculates the true hourly rate, monthly net income, annual projection, and tax impact of any freelance or side income stream — accounting for expenses, self-employment tax, and estimated income tax.
"I made $5,000 from my side hustle" sounds good until you subtract the $800 in expenses, $707 in SE tax (15.3%), and $1,050 in income tax — leaving $2,443 net. Your 80 hours of work earned $30.54/hour after taxes and expenses. This calculator makes those calculations immediate and honest.
How to use it: enter gross income from the side hustle, total deductible business expenses (equipment, software, home office, mileage), hours worked, and your primary job's marginal tax bracket. The calculator shows: - Net income after expenses - SE tax (15.3% on net SE income, with above-the-line deduction for half) - Income tax on net SE income at your marginal rate - Total tax as % of gross income - Effective hourly rate after all taxes and expenses - Quarterly estimated tax payment required
Expense tracking: add expense categories (equipment, professional services, travel, marketing, software subscriptions) with amounts. The tool tracks total deductible expenses and shows the tax savings each category generates.
Income projection: enter actual income for completed months and projected income for future months. The tool builds an annual projection and flags whether quarterly tax payments are needed.
Privacy: income and expense data runs in the browser.
Frequently Asked Questions
- If your net self-employment income (gross minus expenses) is $400 or more in a year, you must file a tax return and pay self-employment tax. Below $400 net, no SE tax is owed, but if you have other income that requires filing, you still report the side hustle income. The $400 threshold is specifically for SE tax — income tax filing thresholds are different.
- Yes, if you use a specific, dedicated area of your home regularly and exclusively for your side hustle business. You can deduct the proportional square footage: a 150 sq ft office in a 1,500 sq ft home = 10% of home expenses (rent, utilities, internet, renter's insurance). The home office deduction cannot create a loss — it can reduce income to zero but not below.
- The IRS standard mileage rate for 2024 is 67 cents per mile for business driving. Keep a mileage log: date, destination, business purpose, miles driven. Apps like MileIQ, Everlance, or simply a spreadsheet with your odometer reading work. On a 10,000 business mile year, the deduction is $6,700 — significant tax savings.
- Yes. As of 2024, payment platforms are required to issue a 1099-K for accounts receiving over $5,000 in business payments (the threshold was $600, which was delayed). Regardless of whether you receive a 1099-K, all income from services or products is taxable. Personal reimbursements (splitting a dinner bill) are not business income and not taxable.