How can I minimize my tax liability in a side hustle while still reporting it as income on my 1099 form?

I totally get your concern about minimizing your tax liability as a solo entrepreneur. First off, you're doing the right thing by reporting your income accurately on your 1099 form - that's always a good habit to be in. To minimize your tax liability, you'll want to take advantage of any deductions and credits available to self-employed individuals. One key area to explore is business expenses - any costs directly related to your graphic design business can be deducted from your income, which can significantly reduce your tax liability.

Some examples of business expenses might include things like software subscriptions, equipment, and even home office expenses. Just make sure to keep track of your receipts and expenses throughout the year, and consult with a tax professional (even if it's just a tax software tool) to ensure you're taking advantage of everything you're eligible for. In terms of tax software, I've heard good things about TurboTax Self-Employed and QuickBooks Self-Employed - both can help guide you through the process and ensure you're taking advantage of all the deductions and credits available to you.

One more thing to keep in mind is that you may be eligible for the Qualified Business Income (QBI) deduction, which can provide an additional tax benefit for self-employed individuals. This is a bit more complex, so it's worth consulting with a tax professional or using tax software to see if you qualify. By taking advantage of these deductions and credits, you should be able to minimize your tax liability and keep more of your hard-earned income.