Extra income. But while you’re focused on the additional income stream, there is another significant benefit to side hustles that you’re missing out on. There are endless possibilities to pursue when it comes to side gigs and passion projects that can help you make some extra cash—tutoring, freelancing, dog walking. A side hustle can be a great way to earn some money on top of your paycheck. Done correctly, having a side business can cut down your losses during tax season. That’s right. When transformed into a side businessyour side hustle can also help you keep your money. But starting a business can be complicated. You’ll need to know how to transform your side hustle in order to reap the tax benefits. The way you structure your business impacts your taxable income. When you first started side hustling, you probably started as a sole proprietor. That makes this the simplest way to structure a business.