BLUE FOX | Accounting for Nonprofits and Social Enterprises
  • Accounting Services
  • Tax Preparation
    • Tax Deadlines
  • About
    • Our Founder & CEO
    • Our Team
    • We're Hiring!
    • Our Clients
    • Our Philosophy
    • Benefits of Outsourced Accounting Services for Nonprofits
    • Technology Solutions
    • Testimonials
    • FAQs
  • Blog
  • Freebies
  • Contact
  • Subscribe

How to Handle Taxes For Your Side Hustle

12/21/2020

0 Comments

 

​Independent Contractors, Self-Employed, Sole Proprietors - That’s You

Picture
If 2020 has taught us anything, it’s to prepare for the unexpected. How might you do that? Well if you have recently started a side gig to earn extra income, now is the time to compile your financial information to complete the IRS  Form 1040, and we can help you do that!

Our foxtastic team at Blue Fox has created multiple resources to help our friends who have a side business [Schedule C Form and Tax Prep video]. We also wanted to share  more tips on how to handle taxes for your side hustle. Most people who start a new opportunity invest all their extra time in growing this venture; we’re here to help you with the other fun stuff like taxes. 

Below are 3 tips on best managing taxes for your side business. 

1. Stash cash every payday
If you’re used to getting a paycheck from your employer with your taxes withheld, you will have to start taking on that responsibility on your own. Don’t worry, we’ll help you with how much to put aside.

In general, put aside 25 to 35 percent of your income. Always make sure to consult with a tax professional [wink wink, us] about how much you’ll need, especially if you are making quarterly payments to the IRS. Small business owners pay quarterly taxes on January 15, April 15, June 15 and September 15. 

2. Keep a keen eye on expenses
​Make sure you are tracking your costs throughout the year. You could do this on your own in a spreadsheet or use something specifically designed for those who are self-employed like QuickBooks Self-Employed to separate business and personal expenses, give you quarterly estimated taxes and automatically track your mileage. 

Tracking your expenses pays off [literally]. Your professional tax services provider can help show you deductions that you’re eligible for including things like a home-office, mileage, and materials and equipment bought and necessary for your business. 

3. Hire a Pro 
Working with a professional to help you with your tax plan is a great investment in yourself and a new venture. At Blue Fox, we have helped our sole proprietors or single-member LLC clients save thousands of dollars and keep their audit risk low by asking us for help at tax time. 

Another group of our clients have taken their side hustle to a whole new tax advantaged level by becoming S-corporations. We love using legal strategery (yes, we know that’s not a word) to proactively help people maximize their tax refunds. [Read more about that here.]

It wouldn’t be 2020 if there wasn’t complication so we think it’s best to reach out to a tax expert [hey, we would love to help] to ensure you are on the right track with the behind-the-scenes side of your business. 

If you’re looking for a human person to talk to about tax planning, that’s us. Let’s connect at (321) 233-3311 and [email protected].
0 Comments



Leave a Reply.

    Our Blog

    Welcome to the Blue Fox Blog! A fairly entertaining source of info and news related to our company, nonprofits, social sector trends, and, of course, accounting. Enjoy!

    Subscribe

    Top Articles

    Back to Basics: How to Set Up Your Nonprofit Chart of Accounts

    How "Small" Payroll Mistakes Cause Multi-Year S#!t Storms for Nonprofits


    Behind the Scenes, New Client Onboarding Call

    When to Hire a Tax Professional - 10 Factors to Consider

    40+ Ideas to Light a Fundraising Fire Under Your Nonprofit Board Members

    Why Outsource Your Nonprofit Accounting to Blue Fox?  Ask One of Our Newest Clients

    Client CASE STUDY: One of The Most Financially Sustainable Nonprofit Orgs We Know

    The Magical Nonprofit Financial Ratio Matrix

    10 Reasons to Outsource Your Nonprofit Accounting
    ​
    How to Make Your Nonprofit Recession-Proof


    ​How to Engage Your Board of Directors in Financial Conversations

    QB Tip of the Month: How to Use Classes for Painless Grant Writing
    ​
    When to Hire an Accountant for Your Social Impact Org

    Are You Paying Too Much for Payroll?

    Company News

    Blue Fox Teams Up With Bloomerang to Develop Nonprofit Resources

    Blue Fox Earns Better Business Bureau Accreditation

    Blue Fox Launches Protected By Logo
    ​
    Blue Fox - The Origin Story
     

    Categories

    All
    Blue Fox Foundation
    Company News
    For Individuals
    For Nonprofits
    For Social Enterprises
    Press Announcements

    Archives

    May 2025
    December 2024
    November 2024
    October 2024
    July 2024
    June 2023
    March 2023
    January 2023
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    November 2018
    October 2018
    September 2018

    RSS Feed

Request A Quote

Services

Subscribe

Contact

Disclaimer


QuickBooks Certified ProAdvisor
Picture
Picture
NTEN Nonprofit Technology Network Member
Picture
Picture
Picture
Picture
Picture
Picture

BLUE FOX
Phone:
(321) 233-3311, Email: [email protected]
Mailing Address: 2542 Woodfield Circle, Melbourne, FL 32904
Copyright © 2025 - All Rights Reserved
​
​Holiday office closures:
To give our team time to unplug and refresh with their family and friends, the Blue Fox virtual office closes 
for all federal holidays, the week of Thanksgiving, and the week between Christmas and New Year's Day.
  • Accounting Services
  • Tax Preparation
    • Tax Deadlines
  • About
    • Our Founder & CEO
    • Our Team
    • We're Hiring!
    • Our Clients
    • Our Philosophy
    • Benefits of Outsourced Accounting Services for Nonprofits
    • Technology Solutions
    • Testimonials
    • FAQs
  • Blog
  • Freebies
  • Contact
  • Subscribe