Do you make money from your blog? Then your blog qualifies as a business. And that means that you need to treat it as a business come tax time. Every last cent you earn from your blog MUST be reported to the IRS as income. While we’re glad to share our tax tips for bloggers, we recommend that you get advice from a qualified tax preparer.
Is blogging income more complicated than any other business income? Not really; the hardest part is remembering to approach it like a business. Below are a few tax tips for bloggers who make income off of their blog.
Blogging is one way to make money that doesn’t require much to get started. Because of this, you probably won’t have a lot of expenses, but you should have some. In many cases, these expenses can be itemized as deductions when filing your taxes. Do you pay for web hosting? Did you pay someone to design your site? Did you invest money into logo design, advertising, and branding? All of these things can be deductions.
If you get audited, expect the agent to be skeptical about your expenses. Like most, he or she will not expect there to be many expenses to running a blog. Having your receipts to verify your purchases will keep the process quick and easy. Even if you purchase services online, ask for them to send you an invoice so you can keep it for your records.
When you are profiting as a blogger, you are running your own business. This means that you are taxed differently than those working for others’ businesses. Filing self-employment tax isn’t that difficult, but if you find the process intimidating, you can work with a certified public accountant to navigate the process.