But here’s the thing, if you blog for fun and you DO NOT BRING IN REVENUE then it’s up to you. You may not make any money, you may just be your dog’s voice on the web or love to rant in a place where you spark some conversation. In that case, you can blog your heart out and not worry about taxes.
However, if you blog about your business, blog with affiliate advertisements gleaming in your sidebars, or receive products for review or use, then you may be required to file taxes on your business of blogging.
According to the Internal Revenue Service (IRS), taxable income is defined as all “employee wages and fringe benefits, and [all] income from bartering, partnerships, S corporation, and royalties.” They also state that you “have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirements listed in the Form 1040 instructions.”
So what does that mean? If you are getting any sort of income you have a business in blogging. But when you have a business that means you have business expenses. Business expenses will help you balance out your income from your blog. What are some business expenses you might want to consider:
- Conference Fees (did you attend a conference about your business or blog)
- Hotel costs (if you traveled for business)
- Mileage (related to business trips)
- Webinars and Seminars
- Books (that help with your product or conducting your business)
- Website hosting fees
- Website design fees
- Jump drives or CDs for backup and data storage
- Graphic design fees (for your website or marketing materials)
- Business cards, letterhead, or other business office materials
Obviously this isn’t an all-inclusive list and you should consult your tax accountant or the IRS for further information if you have questions, but this gives you a start and definitely gives you a list of things you should consider tracking.
Well, there it is…if you are making any profit or receiving any fringe benefits, you need to file your taxes, whether you turned a profit or not. But if you filing taxes on your blogging business, make sure that you are writing off what you need to with your associated business expenses. Oh and don’t forget to keep track with receipts.
What blogging expenses do you track for your blogging business?