Gig Work Isn't a Side Hustle: It's a Second Job—Here's the Truth

Is gig work really a side hustle, or is it a second job?

You type into Google: "Is gig work a side hustle?" You're not alone. The term “side hustle” gets thrown around a lot, but the reality is that for many of us, gig work is less of a side project and more of a second shift. We're not talking about a few extra bucks for coffee; we're talking about a significant chunk of our income. According to PYMNTS / New Reality Check, side hustle income makes up 43% of a hustler's total income on average, and for Gen Z, that number jumps to 57%. That's not a side thing—that's a second job with a different boss, no benefits, and a tax bill you can't ignore.

Why do we keep calling it a side hustle if it's so much work?

The term "side hustle" is a relic from a simpler time. It was supposed to imply something small, flexible, and low-stakes. But the data tells a different story. A Quicken survey found that 43% of side hustlers actually make more money working fewer hours than they would at a single salaried job. That's not a side gig; that's a smarter way to work. Yet we still use language that minimizes it. We say "side hustle" when we mean "second income stream." We say "gig" when we mean "freelance contract." The words we use affect how we treat it—and how we manage it. If you're making 43% of your income from gig work, that's not a hobby; that's a career move.

How many hours are we really putting into gig work?

You might think gig work is a few hours here and there, but the actual hours are eye-opening. An Integra Credit study found that 96% of gig workers spend fewer than 35 hours per week on gig work, but 70% work fewer than 5 hours per week. So most of us are spending under 5 hours a week on gigs—but that's still a significant chunk of time when you're already working a full-time job. And here's the kicker: those few hours are often the difference between making ends meet and sinking. The same study found that 38% of the U.S. workforce, about 64 million people, did freelance or gig work in 2024. We're not a fringe group; we're a huge part of the labor market.

Is gig work just for extra spending money, or do we need it to survive?

There's a myth that side hustles are for fun money—vacations, gadgets, eating out. But the reality is much more serious. Bankrate's 2024 survey found that 36% of side hustlers use the income for regular living expenses, and 20% use it to pay down debt. And a PYMNTS survey found that 22% of consumers take on side work primarily to cover living expenses, with another 38% listing covering expenses as one of several goals. That means nearly 60% of us are relying on gig work to keep the lights on. This isn't a luxury; it's a necessity. When you're living paycheck to paycheck—and 66% of Americans are, according to Quicken—that gig income is what keeps you afloat.

Do I have to pay taxes on gig income? I thought it was just a side thing.

Here's the myth that gets so many of us in trouble: "It's just a side hustle, so I don't need to report it." Wrong. The IRS is very clear: gig income is taxable, even if you don't get a 1099 form (IRS Gig Economy Tax Center). And if your net earnings from self-employment are $400 or more in a year, you have to file Schedule SE and pay self-employment tax (IRS Self-Employment Tax). That tax is 15.3%—12.4% for Social Security and 2.9% for Medicare—on top of your regular income tax. And here's the kicker: you're supposed to pay estimated taxes quarterly (IRS Self-Employment Tax). If you're making $891 a month on average (Bankrate), that's over $10,000 a year, which means you're likely on the hook for a significant tax bill. Ignoring it is not an option.

Is gig work a dead end, or can it actually lead somewhere?

Many people view gig work as a trap—no benefits, no stability, no future. But the data suggests otherwise. A Quicken survey found that 72% of side hustlers feel more financially secure with multiple income sources, and 57% have enough savings for more than four months in an emergency. That's better than the average American, who, as we noted, is living paycheck to paycheck. Gig work isn't just a stopgap; it's a path to financial resilience. And for some, it's a springboard to full-time self-employment. 16% of side hustlers plan to develop their side hustle into their main source of income (Bankrate), and 25% are building skills for a future career (Quicken). So don't sell it short—but also don't treat it like a permanent second shift if you want more.

So, what should we actually do about our gig work?

Here's my recommendation: stop calling it a side hustle. Start calling it what it is—a second job. That shift in mindset changes everything. You'll start tracking your hours, setting boundaries, and, most importantly, treating it like a business. That means setting aside money for taxes (yes, quarterly estimated payments—set up a separate savings account and transfer 25-30% of each gig payment), tracking your expenses for deductions (you can deduct the employer-equivalent portion of self-employment tax, among other things, per the IRS), and investing in yourself if you want to grow it. The gig economy is here to stay—Google searches for "gig work" have increased 548% since 2019 (Integra Credit). So get smart about it. If you're making 43% of your income from gig work, you owe it to yourself to treat it with the seriousness it deserves.

Sources

• Bankrate Side Hustles Survey (2024) - https://www.bankrate.com/credit-cards/news/side-hustles-survey-2024/
• Integra Credit / gig economy study - https://www.cpapracticeadvisor.com/2026/08/17/38-of-american-workers-earn-money-from-gig-work/188592/
• PYMNTS / New Reality Check - https://www.pymnts.com/gig-economy/2025/gen-z-turns-side-gigs-into-57-of-total-income/
• Quicken Side Hustle Survey (2024) - https://www.quicken.com/about-us/press/quicken-survey-43-percent-of-americans-earn-more-with-side-hustles-than-single-jobs/
• IRS (Self-Employment Tax) - https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
• IRS (Gig Economy Tax Center) - https://www.irs.gov/businesses/gig-economy-tax-center