How to Make Money While on Maternity Leave

Maternity leave offers an opportunity to focus on new family responsibilities, but it can also present financial considerations due to potential reductions in regular pay. This article explores flexible strategies for generating income during maternity leave, focusing on methods that leverage existing skills, utilize online platforms, or involve developing small ventures.

Monetizing Existing Skills

Leveraging existing professional or well-developed personal skills presents a direct path to generating income during maternity leave. Many roles traditionally performed in an office setting can be adapted to a freelance or consulting model, offering flexibility.

Offering professional services like freelance writing, editing, or graphic design is a common avenue. Businesses and individuals seek external support for content, marketing, or visual branding. Platforms such as Upwork or Fiverr can connect skilled individuals with clients for project-based assistance. Compensation varies by skill, project complexity, and budget, typically ranging from $20 to $100 or more per hour for experienced professionals.

Virtual assistant services are another practical option, encompassing tasks like email management, scheduling, data entry, or social media management. Small businesses and entrepreneurs often need administrative support without a full-time employee. Online tutoring or specialized coaching also allows individuals to share knowledge in academic subjects, business strategies, or personal development. These services can be delivered remotely via video conferencing, offering flexibility around childcare.

Identify marketable skills by assessing your professional background and specialized training. Consider problems you can solve or expertise in demand. Building a portfolio or testimonials helps attract clients, as does networking within professional communities. Direct outreach to potential clients can also yield opportunities.

Setting competitive rates requires researching industry averages for similar services and considering your experience level. Account for the value you provide and the time commitment involved. Managing time effectively around childcare responsibilities involves establishing clear boundaries, communicating availability to clients, and potentially scheduling work during nap times or after hours.

Income earned through these freelance activities is considered self-employment income by the Internal Revenue Service (IRS). This income is subject to self-employment tax, which covers Social Security and Medicare taxes, generally at a rate of 15.3% on net earnings. Individuals expecting to owe at least $1,000 in tax from self-employment must pay estimated taxes quarterly using Form 1040-ES. Accurate record-keeping of all income and deductible business expenses, such as software subscriptions or home office deductions, is important for tax purposes, as these expenses can reduce taxable income.

Earning Through Online Platforms

Online platforms offer diverse opportunities for earning income through task-based work or micro-employment, providing significant flexibility for individuals on maternity leave. These platforms often break down larger projects into smaller, manageable tasks, allowing users to work on their own schedule. This type of work can be particularly appealing due to its low barrier to entry and the ability to choose tasks that fit limited time slots.

Online survey sites offer small payments or gift cards for opinions on products or services. While pay per survey is low, multiple surveys accumulate. Micro-task sites like Amazon Mechanical Turk offer small digital tasks, including data categorization or image tagging. These tasks are usually paid per completion, often ranging from a few cents to a dollar, and can be done in short bursts.

Transcription services convert audio or video files into written text; companies hire transcribers for legal, medical, or general content, paying per audio minute or hour. Data entry roles involve inputting information into databases or spreadsheets, also found on various online platforms.

User testing platforms pay individuals to test websites or applications and provide feedback on their usability. These tests involve recording screen activity and vocal commentary, with payments ranging from approximately $10 to $30 per test, usually taking 15 to 30 minutes to complete.

The commitment for these platforms is highly flexible, allowing users to log in and work whenever they have available time. Payment structures vary, with some platforms paying directly to a bank account or PayPal, while others offer gift cards or points redeemable for rewards. The accessibility of these options is high, as they require only a computer or smartphone and an internet connection.

Income earned from these online platforms, regardless of the amount, is considered taxable income by the IRS. If an individual earns $600 or more from a single payer in a calendar year, the payer is required to issue Form 1099-NEC, Nonemployee Compensation, to report the income. Even if a 1099-NEC is not issued, the income must still be reported on Schedule C (Form 1040), Profit or Loss from Business. This income is also subject to self-employment taxes, requiring quarterly estimated tax payments if the expected tax liability is significant.

Developing Small Ventures

Developing small-scale businesses or ventures during maternity leave offers an opportunity to build a sustainable income stream while pursuing personal interests. These ventures can often start with minimal investment and scale gradually as time and resources permit. The focus here is on creating products or services that can be managed flexibly.

Selling handmade crafts is popular, including jewelry, knitted goods, or home decor. Platforms like Etsy provide a marketplace for artisans, handling payment processing and shop management tools. Initial steps include identifying a niche, sourcing materials, and developing a consistent product line. Basic marketing can involve using social media to showcase products and engage customers.

Reselling items involves sourcing products at a low cost and selling them for a profit. This can include vintage clothing, collectibles, or common household items. Online marketplaces such as eBay, Poshmark, or Facebook Marketplace facilitate these transactions. Success in reselling depends on identifying profitable items, understanding market demand, and effective listing presentation, requiring time for sourcing, cleaning, photographing, and shipping.

Creating and selling digital products offers a highly scalable business model, as they are created once and sold repeatedly without physical inventory. Examples include e-books, online courses, printable planners, or digital art. Platforms like Gumroad, Teachable, or personal websites can host these products. Initial steps involve identifying a problem or knowledge to share, creating high-quality content, and promoting it through content marketing or social media.

Offering local services caters to immediate community needs. Examples include pet sitting, meal preparation for neighbors, personalized gift creation, or organizing services. These services often rely on word-of-mouth referrals and local advertising. Building a client base involves demonstrating reliability and quality service. For any small venture, it is important to track all income and expenses meticulously.

Income generated from these small ventures is considered self-employment income and is subject to self-employment tax. Individuals operating these ventures are considered sole proprietors for tax purposes, with business income and expenses reported on Schedule C (Form 1040).

If sales of physical goods are involved, there may be sales tax implications, requiring registration with state tax authorities and collection of sales tax from customers, which then must be remitted to the state.

Separating business finances from personal finances by using a dedicated bank account for the venture can simplify record-keeping and tax preparation. Initial costs for setting up a venture, such as website fees, material costs, or marketing expenses, can often be deducted as business expenses, reducing taxable income.

Citations

https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
https://www.irs.gov/payments/pay-as-you-go-you-may-need-to-pay-estimated-taxes
https://www.irs.gov/businesses/gig-economy-tax-center
https://www.upwork.com/resources/freelance-hourly-rates
https://www.irs.gov/businesses/small-businesses-self-employed/state-government-websites
https://www.irs.gov/newsroom/what-is-the-standard-mileage-rate-for-2024