Admin
Recording side income from week one
The first payments are small, which makes them easy to forget. By the time tax season arrives, the details are spread across apps, transfers and messages. A simple record from the first week avoids that.
Assume it's taxable
Side income is usually taxable, even when small or irregular. Some countries have thresholds or simplified schemes for small earners. Check your tax authority's website for the rules that apply to you. In Brazil, the Receita Federal publishes guidance on self-employed income and the MEI regime.
What to record
- Date of each payment
- Who paid and what for
- Amount received after platform fees
- The fee itself
- Costs such as materials, shipping and travel, with receipts kept
- Hours spent, so you can review the work later
Once a week
Update the record in ten minutes at the end of each week. Catching up on months at once is where mistakes happen.
A separate account
Receiving side income in its own account makes the record almost automatic and shows clearly what the work brings in.
Ask early
If you're unsure how to declare it, ask an accountant or the tax authority early, not in the week of the deadline.
← Back to the firing record