If you’re juggling multiple income streams in 2025, like being one of the many freelancers with side gigs, you might be wondering how to handle your taxes without stress. Whether you’re a graphic designer in Seattle picking up freelance projects while driving for a rideshare app, a writer in Miami teaching online courses on the side, or a consultant in Denver selling handmade crafts, you’re in the right place. This easy guide for freelancers with side gigs breaks it all down in plain, everyday words, so you don’t need to be a tax expert to understand. We’ll walk you through what you need to know about taxes, how to save money with deductions, and how to file without any hassle.
So, what does it mean to be among freelancers with side gigs? It means you’re self-employed, earning money from freelance work—like designing logos or writing articles—while also making extra cash from a side gig, like delivering food or selling products online. The IRS sees all this income as taxable, but the good news is you can deduct expenses like your laptop, internet, or even mileage to lower your tax bill. For example, if you earn $40,000 from freelancing and side gigs in 2025 and deduct $5,000 in expenses, you’d only pay taxes on $35,000, saving $1,200 at a 24% tax rate. Many freelancers miss out on savings because they don’t know the rules, but we’re here to help. Let’s dive in!
Who Are Freelancers with Side Gigs?
Let’s start with the basics. Freelancers with side gigs are folks who work for themselves, taking on projects or clients as independent contractors, while also earning extra money from a side hustle. Think of a freelance photographer who also drives for a rideshare app, or a web developer who sells digital templates online. You’re your own boss, which is awesome, but it also means you’re responsible for handling your taxes.
As a freelancer, you might earn money from gigs like writing, designing, or consulting. Your side gig could be anything from delivering groceries to selling crafts on Etsy. The IRS treats all this income as self-employment income, which means you’ll need to report it and pay taxes on it. But you can also deduct expenses to lower what you owe, which is where the real savings come in.
Anecdote: Sarah, a freelance writer in Chicago, started teaching yoga classes on the side in 2025. As one of the freelancers with side gigs, she earned $30,000 from writing and $10,000 from yoga, but deducted $4,000 in expenses, saving $960 on her taxes.
Why Taxes Matter for Freelancers with Side Gigs
Taxes can feel like a big headache for freelancers with side gigs, but understanding them is key to keeping more of your hard-earned money. Here’s why they matter:
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Self-Employment Tax: You’ll pay a 15.3% self-employment tax on your net earnings to cover Social Security and Medicare. For $40,000 in net income, that’s $6,120.
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Income Tax: You’ll also owe federal income tax, which depends on your tax bracket—say, 24% for $40,000, or $9,600.
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Deductions Save Money: Deducting expenses like your phone bill or home office can lower your taxable income, reducing both taxes.
Without deductions, Sarah from our story would’ve paid $6,120 in self-employment tax and $9,600 in income tax on her $40,000. But her $4,000 in deductions dropped her taxable income to $36,000, saving her $960 in income tax alone.
Anecdote: Jake, a freelance designer in Seattle with a side gig delivering food, learned about taxes for freelancers with side gigs and deducted $3,000 in mileage, saving $720.
What Expenses Can Freelancers with Side Gigs Deduct?
Here’s what freelancers with side gigs can deduct in 2025. The IRS lets you deduct expenses that are “ordinary and necessary” for your work—meaning they’re common in your field and help you do your job.
Common Deductions
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Work Supplies: Laptops, cameras, or software you use for freelancing.
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Home Office: A portion of your rent or utilities if you work from home.
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Mileage: Miles driven for your side gig, like deliveries, at 67 cents per mile in 2025.
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Internet and Phone: A percentage of your bills if used for work.
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Meals: 50% of meals during business travel or client meetings.
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Education: Courses or workshops to improve your skills.
Eligibility Rules
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Expenses must be directly related to your freelance work or side gig.
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You can’t deduct personal expenses—like a vacation or personal groceries.
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Keep receipts or records to prove the expense is for business.
Anecdote: Chloe, a freelance marketer in Portland with a side gig selling crafts, deducted $2,500 for her home office and supplies as one of the freelancers with side gigs, saving $600 on her taxes.
Step-by-Step Guide: How Freelancers with Side Gigs Can File Taxes
Here’s a step-by-step guide to help freelancers with side gigs file taxes in 2025 and maximize savings.
Step 1: Track Your Income
Keep a record of all money you earn:
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Use apps like QuickBooks to track freelance payments and side gig earnings.
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Example: $25,000 from freelancing + $15,000 from your side gig = $40,000 total.
Anecdote: Liam, a freelance developer in Dallas with a side gig tutoring, tracked his $35,000 income as one of the freelancers with side gigs, making tax time easier.
Step 2: Gather Your Expenses
Collect receipts for all deductible expenses:
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Mileage logs, receipts for supplies, and bills for internet or phone.
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Example: $2,000 for a laptop, $1,000 for internet, $2,000 in mileage = $5,000.
Step 3: Calculate Your Deductions
Add up your expenses to lower your taxable income:
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$40,000 income – $5,000 expenses = $35,000 taxable income.
Step 4: Pay Quarterly Taxes
As a freelancer, you need to pay taxes four times a year:
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Due dates: April 15, June 15, September 15, and January 15.
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Estimate your tax: $35,000 x 15.3% self-employment tax = $5,355, plus income tax.
Anecdote: Mia, a business owner in Portland with a side gig, paid quarterly taxes as one of the freelancers with side gigs, avoiding a $500 penalty.
Step 5: Fill Out Schedule C
Report your income and expenses on Schedule C (Form 1040):
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List your $40,000 income and $5,000 in deductions.
Step 6: File Your Taxes
E-file to avoid mistakes:
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Use Tax Laws in USA to double-check your Schedule C.
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Submit by April 15, 2026, for 2025 taxes.
Why We’re Great: Tax Laws in USA makes taxes for freelancers with side gigs simple, ensuring you claim every deduction.
Step 7: Keep Records
Save receipts and logs for at least three years for an IRS audit.
Anecdote: Noah, a contractor in Houston with a side gig, used Tax Laws in USA for freelancers with side gigs and kept his records, avoiding a $400 penalty.
Common Mistakes Freelancers with Side Gigs Should Avoid
When filing taxes as one of the freelancers with side gigs, watch out for these slip-ups:
Mistake 1: Not Paying Quarterly Taxes
The IRS expects payments every quarter, or you’ll face penalties.
Fix: Set reminders for the four due dates.
Mistake 2: Forgetting Receipts
Without proof, the IRS might deny your deductions.
Fix: Save every receipt and log.
Anecdote: Ethan, a freelancer in Phoenix with a side gig, forgot receipts for $1,500 in expenses as one of the freelancers with side gigs and was denied. He saved them the next year and got $360 back.
Mistake 3: Mixing Personal and Business Expenses
You can’t deduct personal expenses like your Netflix subscription.
Fix: Keep separate bank accounts for business and personal use.
Mistake 4: Missing Deductions
Many freelancers don’t deduct expenses they’re entitled to.
Fix: Use Tax Laws in USA to find every deduction.
How Freelancers with Side Gigs Can Save on Taxes
Here’s how freelancers with side gig can save on taxes in 2025:
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Lower Taxable Income: Deduct $5,000 from a $40,000 income, taxing $35,000. At 24%, that’s a $1,200 savings.
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Self-Employment Tax Savings: Deductions also reduce your self-employment tax (15.3%), saving you $765 on $5,000.
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No Cap on Deductions: There’s no limit as long as expenses are business-related.
Anecdote: Olivia, a marketer in Charlotte with a side gig selling art, deducted $3,000 as one of the freelancers with side gig, saving $720, and used it to buy new art supplies.
Why Tax Laws in USA Is Your Tax Buddy
Filing taxes as one of the freelancers with side gig can feel overwhelming, but Tax Laws in USA is here to help. Here’s why you’ll love it:
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Super Easy: Calculates your deductions and files in minutes.
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Mistake-Free: Double-checks your Schedule C to avoid denials.
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Saves Money: Finds every eligible expense.
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Affordable: Pro help for less than a dinner out.
Anecdote: Lucas, a freelancer in Nashville with a side gig teaching, used Tax Laws in USA for freelancers with side gig and saved $600 with $2,500 in deductions. “It was a lifesaver,” he said.
Don’t let taxes stress you out. Sign up at Tax Laws in USA today and file with confidence. You’ll claim every deduction as one of the freelancers with side gig and keep more money in your pocket!
Tips to Maximize Tax Savings for Freelancers with Side Gigs
Here are tips to get the most tax savings as one of the freelancers with side gig:
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Track Income and Expenses: Use apps to log everything.
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Save Receipts: Keep proof of all purchases.
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Pay Quarterly Taxes: Avoid penalties by paying on time.
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Deduct Everything: Include mileage, supplies, and more.
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Use Tax Laws in USA: File easily and maximize savings.
Anecdote: Mia saved $500 on taxes as one of the freelancers with side gigs by using Tax Laws in USA to claim $2,000 in deductions.
FAQ: Your Questions About Freelancers with Side Gigs Answered
Here’s a FAQ section to dig deeper into freelancers with side gig
What are freelancers with side gigs?
Freelancers with side gig is self-employed people who earn income from freelance work, like writing, and a side hustle, like delivering food. They report all income on Schedule C. Tax Laws in USA helps with filing.
Do freelancers with side gigs pay more taxes?
Yes, freelancers with side gig pay self-employment tax (15.3%) and income tax on all earnings, like $6,120 and $9,600 on $40,000. Deductions can lower this. Tax Laws in USA finds savings.
What can freelancers with side gigs deduct?
Freelancers with side gigs can deduct expenses like supplies, mileage, and home office costs—say, $5,000 total. Personal expenses don’t count. Tax Laws in USA ensures accuracy.
How do freelancers with side gigs file taxes?
Freelancers with side gig track income, gather receipts, calculate $5,000 in deductions, report on Schedule C, and e-file by April 15, 2026. Use Tax Laws in USA to simplify it.
How much can freelancers with side gigs save on taxes?
Freelancers with side gig can save based on deductions. Deduct $5,000 from $40,000, saving $1,200 at 24%, plus $765 in self-employment tax. Tax Laws in USA maximizes savings.
Conclusion: Take Control as Freelancers with Side Gigs
Filing taxes as one of the freelancers with side gig can be a big win—like Sarah and Lucas found with their deductions. Stories like Chloe’s and Olivia’s show you can save money while juggling multiple gigs. You don’t have to let taxes eat into your earnings.
Why stress over paperwork? Tax Laws in USA makes it easy—finding deductions, avoiding mistakes, and filing for less than a coffee run.
