New TaxAct survey reveals side hustlers plan to stick with their gigs long-term — with many unclear on the tax rules
TaxAct, a leading provider of tax preparation software for individuals and businesses, has released the results of a survey that looks at how Americans are rethinking work and income through side hustles. Findings reveal a striking disconnect between the growth of side hustles and Americans’ understanding of the related tax implications.
According to the survey, a staggering 92% of respondents believe more people will be working side hustles, signaling side hustles becoming the “new normal.” Despite this, 56% admit they are lost when it comes to filing taxes on their side hustle income. This revelation comes amidst a surge in gig work, freelancing, content creation, online marketplaces and more.
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Other Notable Findings:
- Survival, Not Luxury: Almost half (42%) of side hustlers use their extra income to make ends meet and pay off debt. Additionally, almost one-quarter (22%) plan to work their side hustle until they pay off debts or bills or reach a savings goal.
- Modest Income Reality: Most side hustlers (73%) earn less than $1,000 per month, revealing the financial landscape of this kind of self-employment, which is contrary to online portrayals of wealth.
- “Forever Side Hustle” Trend: 42% of respondents plan to continue their side hustles indefinitely, signaling a long-term shift in how Americans earn income.
- What’s Making an Impact: Economic conditions (29%), the rise of AI tools (16%) and regulatory or government policies (15%) are seen as major factors impacting the future of side hustles.
Survey Methodology
Survey fielded in February 2025 reaching n=750 total completions. Respondents were US based, aged 18-64, who engage in side hustles alongside their primary responsibilities.
TaxAct is a comprehensive DIY tax software provider that makes tax filing easy, accurate and stress-free. Offering user-friendly technology, step-by-step guidance, and expert support, TaxAct empowers individuals, families, and businesses to file confidently across all 50 states.
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