How to Make Money During the Holidays

The holiday season presents a unique opportunity for individuals to earn additional income, whether to cover increased expenses or to boost savings. Many avenues open up during this period, ranging from traditional employment to entrepreneurial endeavors. Understanding these possibilities can help individuals strategically capitalize on the heightened economic activity that characterizes the festive months.

Seasonal Job Roles

The holiday period sees a surge in demand for temporary workers across various sectors. Retail stores hire seasonal sales associates to manage increased customer traffic and sales volumes. These roles involve assisting customers, restocking shelves, and processing transactions, with hourly pay for seasonal retail sales associates ranging from $12.50 to $15.87. Seasonal warehouse workers are also in high demand for order fulfillment and logistics, and can expect hourly wages between $15.38 and $18.75. These positions are common in e-commerce and shipping companies experiencing peak parcel volumes.

Hospitality businesses, including restaurants and event venues, seek additional staff for holiday parties and gatherings. Roles such as event support, catering staff, or temporary administrative assistants become prevalent. Many businesses begin hiring for these seasonal roles as early as October or November. Individuals employed in these capacities receive a Form W-2 from their employer, detailing earnings and withheld taxes. Employers withhold federal income taxes, Social Security, and Medicare taxes from paychecks, and it is necessary to complete a Form W-4 for tax withholdings.

Selling Products

The holidays create a market for various products, offering opportunities for individuals to generate income through sales. Handmade crafts, such as custom decorations, personalized gifts, or festive apparel, are popular. Platforms like Etsy or local craft fairs provide direct sales channels for these unique items. Another avenue involves baking and selling holiday-themed treats, like cookies, pies, or specialty confections, which can be marketed through local community groups or direct orders.

Reselling popular items, whether new or gently used, can also be profitable. This involves sourcing in-demand toys, electronics, or collectibles and selling them through online marketplaces or local pop-up sales. Individuals need to be aware of sales tax obligations, which vary by jurisdiction, as most states require sellers to obtain a sales tax permit and collect sales tax. Income earned from selling products is considered self-employment income, reported on Schedule C of Form 1040. If net earnings from self-employment reach $400 or more, individuals are responsible for self-employment taxes, and may also be subject to 1099-NEC reporting if a single payer compensates $600 or more, requiring quarterly estimated tax payments if expected taxes exceed $1,000.

Offering Services

The holiday season increases demand for a variety of personal and household services, providing flexible income opportunities. Gift wrapping services become sought after as individuals seek to save time during busy periods. This can be offered from home or at temporary stations in retail areas. Holiday decorating, for both homes and businesses, is another service that sees heightened interest, involving tasks from hanging lights to arranging festive displays.

Personal shopping services, where individuals assist others in finding and purchasing gifts, also gain popularity. This service helps busy clients navigate crowded stores and find specific items. Event support, such as serving at private parties or providing post-event cleanup, offers short-term, high-demand work. Pet sitting and house sitting services are often needed as people travel for the holidays, providing care for animals or maintaining properties. Income from offering services is considered self-employment income.

Leveraging Online Platforms

Online platforms present diverse opportunities for earning income that can be flexible during the holidays. Micro-task websites offer small, discrete tasks that can be completed remotely for a fee. These tasks include data entry, image tagging, or content moderation, with earnings ranging from a few cents to several dollars per task depending on complexity. While individual tasks may pay modestly, consistent engagement can accumulate earnings.

Taking online surveys provides another accessible way to earn money from home, with many platforms paying between $0.25 and $5.00 per survey. Some dedicated users report earning between $50 and $200 per month from these activities. Freelance platforms also offer short-term projects in areas like writing, graphic design, or virtual assistance, which may see increased activity due to holiday-related business needs. Income from these online activities, regardless of the amount, is taxable and should be tracked for reporting purposes.