The Side Hustle Tax Trap That FIRE Planners Miss

Episode 25 of The FIRE Podcast with Fexingo dives into a little-known tax trap that catches many FIRE planners with side hustles: the self-employment tax on Schedule C income. Lucas and Luna break down the difference between FICA for W-2 employees versus the 15.3% self-employment tax burden, using a concrete example of a $20,000 side hustle from freelance editing and Etsy sales. They explain how the Qualified Business Income deduction (Section 199A) can offset some of the hit, and why ignoring this can blow up your withdrawal rate calculations. Specific numbers, real scenarios, and a practical takeaway for anyone earning side income on the path to early retirement. No fluff, just the math that matters. #FIRE #FinancialIndependence #SideHustle #SelfEmploymentTax #ScheduleC #FICATax #QBI #Section199A #TaxPlanning #EarlyRetirement #FrugalLiving #WithdrawalRate #FIREPodcast #Fexingo #FexingoBusiness #BusinessPodcast #PersonalFinance #TaxTrap Keep every episode free: buymeacoffee.com/fexingo