You have a full time job. You also have a side hustle — maybe you sell products online, do hair, drive for a rideshare, clean houses, tutor kids, or run a small catering operation on weekends.
You are not alone. Black women in particular have one of the highest multiple jobholding rates in the country — managing primary employment and side income simultaneously at a rate significantly higher than other groups.
What most side hustlers in New Jersey do not know is that their side income comes with a completely separate set of tax obligations. And those obligations do not wait until April.
The 1099 reality
When you earn money from a client, a platform, or a business as a non-employee — that income is reported on a 1099 form. Unlike W-2 income where taxes are withheld automatically, 1099 income arrives with no taxes taken out. The full amount lands in your account and it is your responsibility to set aside what you owe.
Many first-time side hustlers discover this the hard way when they file in April and owe more than they expected. Sometimes significantly more.
The quarterly estimated tax requirement
Self-employed New Jersey residents and business owners with expected NJ tax liability over $400 must make quarterly estimated payments using Form NJ-1040-ES. Missing these payments triggers underpayment penalties. Shopifystoremanager
That means if your side hustle is generating consistent income — you likely owe estimated taxes four times per year. In April, June, September, and January. Not just at filing time.
At TryUnity Services we calculate your quarterly estimates as part of our Side-Hustle Simplified package so you always know exactly what to set aside and when to pay it.
Cash App, Venmo, and Zelle income is taxable
This is the one that surprises people the most.
If you are receiving payment for services or products through Cash App, Venmo, or Zelle — that income is taxable. The IRS now requires payment platforms to issue 1099-K forms for business transactions over $600 in a year. That threshold has been significantly lowered in recent years and enforcement is increasing.
Telling the IRS you did not know the money was taxable is not a defense. Getting organized before the notices start arriving is.
What you can deduct
The good news about side hustle income is that it comes with legitimate deductions that can significantly reduce what you owe. Depending on your type of work you may be able to deduct:
Mileage driven for business purposes. Home office expenses if you work from a dedicated space. Equipment, supplies, and materials. Phone and internet costs used for the business. Marketing and advertising. Professional services including bookkeeping and tax preparation.
Most side hustlers significantly overpay their taxes because they do not track their deductions. A $99 per month bookkeeping service that saves you $1,200 in taxes is not an expense. It is an investment.
The TryUnity approach to side hustle finances
Our Side-Hustle Simplified package was built specifically for W-2 earners with additional income streams. We track your business income and expenses every month, calculate your quarterly estimates, and prepare a year-end summary that makes tax filing fast and accurate.
No more surprises. No more scrambling. Just a clear picture of your finances every single month.
Book your free 30-minute consultation today and let us show you exactly what your side hustle tax situation looks like — and what we can do to improve it.
TryUnity Services — financial empowerment for the Black community in New Jersey and virtually nationwide.