Should Monty report his income from his graphic design side hustle on his federal tax return?

Monty should report his income from his graphic design side hustle on his federal tax return, even if he receives a W-2 from another source of employment. The Internal Revenue Service (IRS) requires all income earned, regardless of its source, to be reported on a tax return. This includes income from self-employment activities, such as a side hustle, which can be classified as business income.

Even if Monty has a primary job and receives a W-2, any additional income earned through self-employment needs to be disclosed. This is important for maintaining compliance with tax laws and can also impact the overall tax liability, as any additional income may increase Monty’s taxable income.

Further considerations, such as expenses associated with his graphic design work, can impact how much tax he ultimately owes, but the requirement to report the income itself stands irrespective of those factors. Thus, it is essential for Monty to include the income from his side hustle on his federal tax return.