Side Hustles: Realistic Ways to Earn Extra Income
A side hustle can help you pay off debt, build savings or test a business idea. Here's a realistic look at popular side hustles, what they typically pay, how to choose one, how taxes work on side income, and how to avoid scams.
By Pond.com editors Updated 4 min read
Quick answer
- Choose a side hustle that fits your skills, schedule and the money you need, and expect to start small.
- Popular options include freelancing, tutoring, pet sitting, delivery and rideshare driving, selling items and seasonal work.
- Side income is taxable even if you don't get a tax form. Set aside about 25 to 30% for taxes.
- If you earn $400 or more in net self-employment income, you'll owe self-employment tax and may need to make quarterly estimated payments.
- Avoid "opportunities" that ask you to pay up front, promise easy money, or ask you to reship packages or move money.
A side hustle is any way of earning money outside your main job. It can help you pay off debt faster, build an emergency fund, save for a goal or test whether a hobby could become a business. But many side hustles pay less than they first appear once you count costs, time and taxes. Here's a realistic look at how to choose one and keep more of what you earn.
This guide is general information, not financial or tax advice.
Popular side hustles
| Side hustle | What it involves | Startup cost | Good to know |
|---|---|---|---|
| Freelancing | Writing, design, coding, bookkeeping, virtual assistance | Low | Pays best when you have in-demand skills; building clients takes time |
| Tutoring and lessons | Academic tutoring, music or language lessons, online or in person | Low | Good hourly pay; busiest during the school year |
| Pet sitting and dog walking | Through apps or word of mouth | Low | Flexible; reliability and reviews matter |
| Rideshare and delivery driving | Through apps, using your own car | Your car | Flexible, but fuel, wear and taxes cut into earnings |
| Reselling | Selling clothes, furniture, collectibles or thrift finds online | Low to medium | Start by selling things you already own |
| Handyman and yard work | Assembly, small repairs, lawn care, snow removal | Tools | In demand; check licensing rules for larger jobs |
| Seasonal work | Holiday retail, tax preparation, event staff | None | Predictable, short-term income |
| Renting out what you own | A spare room, parking space, equipment or car | Varies | Check local rules, your lease and your insurance |
| Selling crafts or digital products | Handmade goods, printables, templates, photos | Low to medium | Can take time to build sales |
How to choose
- Start with what you know. Skills from your job or hobbies usually pay more than starting from scratch.
- Work out the real hourly rate. Subtract costs such as fuel, platform fees, supplies and taxes, then divide by all the hours you spend, including travel and admin.
- Fit it around your life. Be honest about how many hours you can give without burning out.
- Check your employer's rules on outside work, especially in the same field.
- Start small and test before investing much money.
Taxes on side income
Side income is taxable, even if it's cash and even if you never get a tax form.
- Self-employment tax: if your net self-employment earnings are $400 or more in a year, you owe self-employment tax of 15.3% on most of that income to cover Social Security and Medicare, on top of income tax. You can deduct half of it when calculating your income tax.
- Estimated taxes: if you expect to owe $1,000 or more for the year, you may need to make quarterly estimated payments to the IRS (usually due in April, June, September and January). Another option is to raise the tax withheld from your main paycheck.
- Tax forms: for 2026, businesses generally send a Form 1099-NEC if they paid you $2,000 or more. Payment apps and online marketplaces send a Form 1099-K if you received over $20,000 across more than 200 transactions. You must report your income either way.
- Deductions: you can deduct ordinary and necessary business expenses, such as supplies, software, equipment, a home office in some cases, and business miles at the IRS standard mileage rate. Keep receipts and a mileage log.
For more on how income tax works, see how US income tax works.
Insurance and legal basics
- Driving for an app? Tell your car insurer. Many personal policies exclude coverage while you're logged into a rideshare or delivery app. A rideshare or delivery endorsement is often inexpensive and can fill the gaps.
- Working from home or renting out space? Check whether your homeowners or renters insurance covers business equipment, customers visiting or short-term guests.
- Licenses and permits: some work, such as food sales, childcare, electrical work or short-term rentals, needs a local license or permit.
Avoid side hustle scams
Make the extra money count
Decide in advance where your side income goes, such as paying off debt, building an emergency fund or saving for a goal, so it doesn't disappear into everyday spending.
Common questions
There's no single best one. The best side hustle uses skills you already have, fits around your main job and pays enough after costs and taxes to be worth your time. Skilled work such as tutoring, bookkeeping or design often pays more per hour than app-based gig work.
Yes. All income is taxable, whether or not you receive a Form 1099. If your net self-employment earnings are $400 or more, you also owe self-employment tax for Social Security and Medicare, and you may need to make quarterly estimated tax payments.
For payments made in 2026, businesses generally send a Form 1099-NEC if they paid you $2,000 or more. Payment apps and online marketplaces send a Form 1099-K if you received over $20,000 across more than 200 transactions. You must still report income below these amounts.
Yes. Ordinary and necessary business expenses, such as supplies, software, a share of your phone bill, and business miles driven, can be deducted from your self-employment income. Keep receipts and a mileage log.
Often, yes. Many personal car insurance policies don't cover you while driving for a rideshare or delivery app. Tell your insurer, and ask about a rideshare or delivery endorsement to fill gaps in the app company's coverage.