Things To Remember About Extra Income

While there really is no negative with earning extra income, if you don’t plan it could bite you in the butt come tax time. Always withhold about 30% of your extra income for taxes. Also, make sure side income doesn’t cost money in the form of losing an insurance subsidy or tax credit. If you make tons of money, that’s not a big deal because the extra income compensates for any loss in benefits, but if you make just enough to bump you into a higher bracket, it’s a hard call.

With any money from a regular job or side income, you really should pay close attention to what comes in and what goes out. Using a site like Personal Capital makes it really easy to keep track. You can always defer some of your income into an IRA or HSA if eligible. That way you can watch your extra money grow instead of wondering what you spent it on.

What skills have you turned into extra income? What’s the weirdest service you’ve ever seen someone get paid for?

Image: Flickr/401kcalculator. org