How to Get Extra Money for Christmas

The holiday season often brings increased expenses. Many individuals seek ways to earn additional income to manage these costs. This article provides strategies for generating extra money by leveraging existing assets, engaging in flexible work opportunities, and offering personal skills.

Selling Personal Items

A straightforward approach to generating funds involves selling items you no longer need or use. This method taps into existing assets, providing a relatively quick way to convert unused possessions into cash. Common items suitable for sale include clothing, electronics, furniture, and collectibles. Even unused gift cards can be sold on specialized platforms.

Various platforms facilitate these sales. Online marketplaces like eBay or Facebook Marketplace offer broad reach for a wide array of goods. For specific items, apps such as Poshmark cater to clothing, while local selling apps connect you with buyers in your immediate area. Consignment shops, pawn shops, or even a well-organized garage sale provide local avenues for quick transactions.

When preparing items for sale, cleaning them thoroughly and taking clear, well-lit photographs are important steps. Crafting compelling descriptions that highlight an item’s features and condition can attract more interest. Pricing items competitively, perhaps slightly below similar listings, can help facilitate a faster sale. For safety, it is advisable to conduct transactions in well-lit public places or consider using secure online payment methods.

From a tax perspective, selling personal items generally does not result in taxable income if the sale price is less than or equal to what you originally paid for the item. However, if you sell an item for more than its original purchase price, the profit is a taxable capital gain. Losses on the sale of personal-use property are typically not tax deductible.

If you receive payments for goods sold through third-party payment networks like PayPal or Venmo, you might receive a Form 1099-K. For the 2025 tax year, these platforms are generally required to issue a Form 1099-K if the gross payments exceed $2,500. Regardless of whether you receive a 1099-K, you are responsible for reporting any taxable income from sales on your tax return. Maintaining records of the original purchase price and date for items sold at a profit is important for accurate tax reporting.

Engaging in Short-Term Work

Actively seeking short-term or seasonal employment offers another avenue for earning extra money, often providing a consistent income stream. During the holiday season, many businesses increase their staffing to handle higher customer volumes. Opportunities frequently arise in retail, customer service, package delivery, and food service. These roles can range from part-time positions to temporary contracts.

The gig economy also presents flexible options for earning. Rideshare services, such as Uber or Lyft, allow individuals to earn money by driving passengers. Food and grocery delivery services, including DoorDash, Uber Eats, or Instacart, offer income through delivering meals and groceries. For those with diverse skills, task-based apps like TaskRabbit connect individuals with local jobs ranging from handyman services to cleaning and moving assistance.

Getting started with these platforms typically involves an application process, background checks, and sometimes vehicle inspections for driving-related roles. Most apps are designed for quick onboarding, allowing users to begin earning within days or weeks. The appeal of these opportunities lies in their flexibility, as individuals can often set their own hours, making them suitable for supplementing existing income.

Income from short-term work or gig economy activities is self-employment income and is taxable. If your net earnings from self-employment are $400 or more in a tax year, you must pay self-employment tax, covering Social Security and Medicare. The self-employment tax rate is 15.3% on net earnings (12.4% for Social Security, 2.9% for Medicare).

If you expect to owe $1,000 or more in tax from self-employment income, you must make estimated tax payments quarterly. These payments help meet tax obligations and avoid penalties. Due dates are typically April 15, June 15, September 15, and January 15 of the following year. You may receive a Form 1099-NEC from clients or platforms if they paid you $600 or more for services.

Offering Personal Services

Leveraging personal skills to provide direct services to individuals or local businesses offers another effective way to earn extra money. This approach allows you to set your own terms and often leads to higher per-hour earnings for specialized abilities. Many services are in demand, particularly around the holidays, making it an opportune time to offer your expertise.

Popular services include:
Pet sitting or dog walking
House cleaning or organization
Childcare or babysitting
Tutoring or academic support
Holiday-specific services like gift wrapping, temporary decorating, or running errands
Basic handyman services or yard work

Marketing these services locally can be done through various channels. Word-of-mouth referrals are often effective, so informing friends, family, and neighbors about your offerings is a good starting point. Posting on local community groups, both online and offline, can reach a broad audience. Simple flyers placed on community bulletin boards in libraries or coffee shops can also generate interest.

When offering personal services, it is important to clearly communicate your rates and service terms with clients upfront. Rates can vary based on the service, your experience, and local demand, typically ranging from $15 to $50 per hour or a flat fee for specific tasks. Building a small client base quickly can provide a steady flow of income.

Income from personal services is self-employment income, subject to the same tax rules as short-term work. You are generally required to report all income earned, and if your net earnings from self-employment reach $400 or more, you will owe self-employment taxes, including Social Security and Medicare taxes.

Keeping accurate records of all income and expenses is important for tax purposes. These records will be used to calculate your net earnings, which you report on Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship), when filing your annual tax return. If your self-employment income is substantial, making quarterly estimated tax payments is necessary to fulfill your tax obligations throughout the year.