I do freelance graphic/web design, very here and there right now just because of school. I've had pretty good luck with finding work and having them reference me to friends. Also I've done pro bono work for non profits who either refer me to paying gigs or just start paying me without me even asking!

I believe you only have to report wages according to mn state law if it's over 800 in the course of a year.

The taxes blow. The rule of thumb is to take half of your profit from a project and put it away for taxes.