# Work out how much to set aside for taxes on side income

A simple set-aside plan for taxes on side-gig or freelance income, with questions to confirm and payment reminders.

- Topic: Finance & Accounting
- Framework: Few-Shot
- Level: Standard
- Tags: Finance, Write, Plan, Fill-in Template
- Source: https://www.thinkwithprompt.com/prompts/work-out-how-much-to-set-aside-for-taxes-on-side-income

## Prompt

```text
Help me plan how much of my side income to set aside for taxes so I'm not surprised at tax time.

**Country and state or region:** [LOCATION]
**Main job income:** [YEARLY AMOUNT, and whether taxes are withheld]
**Side income so far this year and expected total:** [AMOUNTS]
**Type of side work:** [e.g. "selling crafts online", "freelance writing", "delivery driving", "renting a room"]
**Business costs I pay:** [supplies, mileage, software, equipment, home office]
**Have I paid any taxes on this income yet?** [yes / no / not sure]

Give me:
1. A plain explanation of which kinds of tax may apply to side income where I live (for example income tax and self-employment tax), stated as general information with [CONFIRM] markers where the rules vary.
2. A conservative set-aside percentage range to start with, the reasoning behind it, and how to adjust it once I know more.
3. Whether I may need to make estimated or advance payments during the year, and what to look up to check.
4. A list of common deductible costs for my type of work to ask about, and the records to keep for each.
5. A simple routine: a separate savings account, moving the set-aside on every payment, and a quarterly check-in.

Don't state exact tax rates, thresholds, or due dates as fact; mark them [CHECK OFFICIAL GUIDANCE]. Remind me that a qualified tax professional can confirm my real liability.
```

## What to fill in

- LOCATION
- YEARLY AMOUNT, and whether taxes are withheld
- AMOUNTS
- supplies, mileage, software, equipment, home office
- yes / no / not sure
- CONFIRM
- CHECK OFFICIAL GUIDANCE

Free to copy and use. From ThinkWithPrompt (https://www.thinkwithprompt.com/), a library of 2,663 curated AI prompts.