Do College Students Have to Pay Taxes on Side Hustle Money?

Short answer: yes, side hustle income is taxable, and self-employment tax can apply once you net $400 in a year, even if you earn too little to owe regular income tax. This guide is general information, not tax advice.

The figures below were checked against the IRS website on 7 October 2026. The IRS updates them, so check the sources at the end of this guide before you file.

Two different taxes

Income tax depends on your total income and your situation, such as whether someone else can claim you as a dependent.

Self-employment tax is a separate tax with a rate of 15.3%. It is made up of 12.4% for Social Security and 2.9% for Medicare. It works like the Social Security and Medicare tax taken from a paycheck, except you work it out yourself on Schedule SE.

The $400 line

You must pay self-employment tax and file Schedule SE if your net earnings from self-employment were $400 or more in the year. Net means what you earned minus allowable business expenses. The rule applies no matter how old you are.

What counts as self-employment

Tutoring, freelance design or writing, delivery or ride driving, and selling handmade items count when you work for yourself rather than as an employee. If a company treats you as an independent contractor, you are generally self-employed for tax purposes. Pay from a regular job is different, because your employer works out and withholds the Social Security and Medicare tax for you.

Do you need a 1099 to owe tax?

No. A company may send you a Form 1099 if payments reach certain levels, but you owe tax on the income whether or not you receive a form. Keep your own record of every payment.

An example

This is an illustration, not real data. Say you net $300 from tutoring in a year. That is under $400, so self-employment tax does not apply, but the income can still count towards your total income if you file a return. If you net $900 instead, self-employment tax applies and you would file Schedule SE with your return.

Quarterly estimated payments

If you expect to owe tax on your side income, you may have to pay estimated tax in quarterly installments instead of waiting until you file. Whether this applies depends on how much you expect to owe, and the IRS explains the rules on its estimated taxes page.

You need an SSN or ITIN

To pay self-employment tax you need a Social Security number or an individual taxpayer identification number (ITIN). International students who are not eligible for a Social Security number can apply for an ITIN.

If you are an international student

If you are on an F-1 or J-1 visa, work authorization rules limit what you can do. Talk to your school international student office before you earn anything on the side.

Where to check

The IRS has a free tool called the Interactive Tax Assistant that can answer whether you need to file a tax return, and a free tax help program called Volunteer Income Tax Assistance (VITA) for people who qualify. Check the current details on irs.gov.