Q: Does having a side hustle make sense for me financially—even if I’m just starting out?

A: Yes—especially if you’re already spending time and money on it!  A side hustle can do more than earn extra income—it can help you lower your tax bill, particularly in the early years when startup costs may outweigh profits.

Here’s how it helps:
•  Offset W-2 income – Business losses can reduce your taxable wages.
•  Turn everyday costs into write-offs – Supplies, mileage, home office space, and more.
•  Unlock smart tax moves – Like retirement plans and equipment write-offs.
•  Create long-term potential – What starts small can grow into something powerful.

To count as a real business (not just a hobby), the IRS expects:
• A goal to make a profit
• Consistent time and effort
• Simple recordkeeping
• Efforts to grow or promote it
• Some separation from personal finances

Bottom line: If you’re putting in effort, a side hustle can turn your time—and your expenses—into long-term financial upside.

Any questions? I’m Vincent Hicks, a CPA based in the Cambridge–Somerville area. Reach out at vhicksconnect@gmail.com or (859) 553-0788.

Disclaimer: This column provides general financial information and should not be considered legal, investment, or tax advice. Always consult a qualified professional for personal guidance.