December 09, 2025
Side Hustle and Taxes: What You Need to Know Before Earning Extra Income in 2025 A simple guide to how side hustle taxes work—and what modern earners, including gaming creators on platforms like 1v1Me, should understand
Side hustles are more popular than ever—whether you're freelancing, delivering groceries, selling digital products, or creating content. But with more income comes an important responsibility: understanding how taxes work.
Many people are caught off guard by tax season because they didn’t realize that side hustle money is still taxable, even if it comes from online platforms, creator programs, or gaming-related opportunities like those surrounding 1v1Me.
This guide will break everything down in simple terms so you can earn confidently without tax surprises.
📘 Do You Have to Pay Taxes on a Side Hustle?
Yes. In the United States, all income is taxable, unless the IRS explicitly says otherwise. This includes money from:
- Freelance services
- Content creation
- Streaming and sponsorships
- Selling goods
- Tips
- Gaming-related monetization
- Brand deals
- Creator programs on platforms like 1v1Me
If you earn $400 or more in self-employment income, you must file a tax return.
Side hustle money isn’t taxed automatically like a paycheck—so planning ahead is crucial.
💼 How Side Hustle Income Is Taxed
Side hustle income is generally considered self-employment income, which means you owe:
- Income tax (based on your tax bracket)
- Self-employment tax (covers Social Security and Medicare)
Because there’s no employer withholding taxes for you, many side hustlers set aside a portion of each payout—often 25–30%—to save for tax season.
🧾 What Forms Will You Receive?
Most platforms, marketplaces, and companies issue Form 1099-NEC or Form 1099-K when you earn over a certain amount.
These forms are used to report your income to the IRS. Even if you don’t receive a form—because your earnings were below the reporting threshold—you still must report all income you made.
For creators who work with gaming brands, affiliate programs, or platforms tied to esports content, tracking income is especially important because payments may come from multiple sources throughout the year.
🧮 What Can You Write Off as a Side Hustler?
Here’s the good news: side hustlers can deduct legitimate business expenses. This reduces your taxable income and lowers how much you owe.
Common write-offs include:
- Equipment (camera, microphone, PC parts)
- Software and subscriptions
- Home office expenses
- Internet and phone use for business
- Travel costs
- Advertising or promotion
- Creative tools (editing apps, AI tools, thumbnails, etc.)
If you're a gaming creator or participate in content related to competitive matches on platforms like 1v1Me, your deductible expenses may include gaming equipment, streaming gear, or recording software—as long as it’s used for your business activity.
⚠️ Side Hustle Tax Mistakes to Avoid
Many side hustlers get into trouble because of avoidable mistakes. Here are the big ones:
Not saving money for taxes
Side hustles don’t withhold taxes—so saving throughout the year prevents painful surprises.
Not tracking expenses
Without proof, you can’t deduct anything.
Ignoring quarterly tax payments
If you owe more than $1,000 in taxes for the year, the IRS may require quarterly estimated payments.
Mixing personal and business purchases
Separate accounts make tax filings far cleaner and easier.
🎮 How Taxes Apply to Gaming Creators and 1v1Me Users
While only vetted pros compete for stakes on 1v1Me, many everyday users build side hustles around gaming content, such as:
- Posting highlight clips
- Streaming match reactions
- Creating tutorials or commentary
- Running gaming TikTok accounts
- Partnering with creators or brands
If you earn money through sponsorships, creator programs, social media monetization, affiliate links, or other gaming-related content—this income is taxable.
Even if you’re not a pro player, simply being part of the gaming ecosystem can create earning opportunities. Those earnings count as self-employment income, and the same tax rules apply.
By treating your gaming content as a legitimate business, you can also deduct expenses like:
- Consoles and PCs used for work
- Controllers, headsets, and monitors
- Internet fees
- Editing tools
- Streaming software
- Lighting and recording gear
This is how many gaming creators keep their taxes manageable while growing their brand.
📝 Final Thoughts
Side hustles empower people to earn more, build skills, and create new income streams—but taxes are part of the equation. With the right knowledge, staying compliant is easy: track your income, save for taxes, keep receipts, and file properly.
Whether your side hustle is local, digital, or connected to the growing world of gaming content, understanding taxes helps you build confidently and sustainably.
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