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
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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.
More Blogging Resources
How do you manage your blog taxes?
Lots of Health, Food & Love,
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.