This is part 2 of a two part series. Part one was about running your blog like a business with free downloadable income tracker. Part two is all about taxes. If you didn’t read part one, I recommend reading that first before jumping into this part.
Last week I talked about running your blog as a business and the importance of tracking blog income. One of the reasons tracking is so important is for taxes. The last thing you want is tax season to roll around and suddenly you’re weeding through a pile of last year’s receipts (ahem…like yours truly). Yes miss super organized utterly failed in this area. I did have several injuries to contend with though. That’s my story and I’m sticking to it.
Just because you’re a blogger doesn’t mean you’re exempt from reporting taxes. Did you know that box of protein bars sent to you is considered income by the IRS? While I doubt the IRS will come after you for them, it’s always good to be armed with knowledge and know what you’re up against.
You may be surprised, but as a blogger there are many items you may be able to deduct from your taxes. It’s in your best financial interest to deduct as much as you can. Of course, check with your tax preparer. They can assess your financial situation and determine what items you can and cannot deduct.
What Are Examples Of Taxable Income?
- Ad Spots
- Affiliate Sales
- Paid Posts
- Sponsored Reviews or Social Shares
- Paid Freelance Work
- Free Product
You may be surprised, but as a blogger there are also many items you may be able to deduct from your taxes. It’s in your best financial interest to deduct as much as you can. Of course check with your tax preparer. They can assess your individual financial situation and determine what items you can and cannot deduct.
What Are Examples Of Business Expenses?
- Blog Design & Logos
- Hosting Fee, Domain Purchase
- Software Services – Hootsuite, PicMonkey, Photoshop, Rafflecopter
- SEO Services
- Business Cards
- Products & Props – i.e. food blogs
- Conference Fees, Travel, Hotel
- Digital Camera
- Computer Accessories
- Home Internet
- Depreciation Expense – i.e. say you buy a new computer, you can deduct a portion of this expense over several years
- Phone – i.e. if you use your personal cell for your blog, you can deduct 50% of your monthly service fee
- Vehicle Mileage – you can deduct a portion of your personal vehicle usage for the year or report depreciation of the asset
- Advertising – i.e. paying for a spot to advertise your page on another site
- Legal Fees – i.e. LLC, trademark, tax preparation
[Tweet “Tax Tips for Bloggers #blogging #taxes”]
To complete the free income tracker I provided in part one, fill out the columns with the date and amount of dollars then organize them into expense and income categories labeling them as such. You can use the lists above to help you categorize them. Be sure to keep all receipts in a folder then enter them in the spreadsheet at the end of the month. From there, sit back and have fun watching your blog grow!
For more tips and advise, I created a Pinterest board for you with all the best links about income and taxes for blogging and small business owners.
Follow Megan @ Skinny Fitalicious’s board Blogging Income & Tax Tips on Pinterest.
More Blogging Resources
12 Lessons From My 1st Year Blogging
What You Need To Know Before Starting A Blog
How To Blog & work 9 to 5
Run Your Blog Like A Business + A Free Income Tracker
How do you manage your blog taxes?
Lots of Health, Food & Love,
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Linking up today with Amanada @ Running with Spoons
Disclaimer: I am not an accountant. Please discuss with your accountant or tax professional your individual financial situation.
Great info, thanks for all of this 🙂
these are such helpful tips!
Thanks, Megan. This is perfect timing – I really need to get going on my taxes for last year. Appreciate all the great info!
Of course!
Nice, Megan! Great tips. I’ve also been told you can deduct some of your food-shopping bill for recipe creation. Have you found that to be the case?
Hi Ashley! Yes you can deduct food for recipes. That is what is meant by “product.”
These are great tips and right on the money! Do your research and make smart decisions.
Glad you liked them!
thanks for these great tips this would help alot with money
I thought a while about blogging but I don’t think I can swing it… wouldn’t have much to talk about.
You would be surprised. I thought that too at first.
I have a personal blog, but I don’t consider myself a professional blogger for income, as I’ve never made anything from it. Would these tips apply to me, or should I prepare my taxes as I normally would, ignoring my blog? I don’t want to be fined for being unaware.
It depends. Income can be ads, sponsored work and any free product you receive. Technically all those should be claimed as income on your taxes. Even if you do not have income from your blog, you can take advantage of a number of tax deductions as a blogger that can be of financial benefit to you as outlined in the post. Best to check with a tax expert if you’re unsure.
Although I’m not a blogger, I have a home business and I’ve been wondering what I’ll do for taxes in the spring. I appreciate the list of business expenses, because I hadn’t thought about how my cell phone could be one of my expenses! I’ll have to really go through and think about every little thing I use to make sure I’m including it all!
I’m glad you found it helpful. I was certainly surprised by the number of write offs available, but like you said, you have to remember to track them. Now that’s the tricky part!
In the past, I used to think that tax write-offs were more hassle than they were worth. After looking at the list you composed of how many tax-exempted items their are even for bloggers, I am warming very quickly to the idea. I could see legal fees adding up quick in order to do things you suggested such as trademark, so there is at least one business expense I think definitely makes it worth it to spend a little extra time preparing for tax season.
Depending on how much you earn as a blogger, you may need to pay estimated taxes quarterly. I would recommend checking with your tax professional to see if this is something you should be doing, as if you do not pay your quarterly taxes on time you may be penalized.
Best Guide for tax tips for bloggers! Enjoyed reading it. Adding your site to bookmarks!
Really Great Advice ! Enjoyed reading it. I expect more from you in future
Hello,
I really need to get going on my taxes for last year. Appreciate all the great info!
Thanks for the Pro Tips.
Great Post! Thanks For Sharing 🙂