I wanted to share some tax tips for bloggers. This is a very important subject, to say the least.
Here are a few of my own tax tips.
First- DEDUCTIBLES: These are things that you are spending money on to better your blog. You pay taxes after deductibles, so it is important to keep track of these.
I use my separate PayPal account for all purchases, so it is easy for me to see where my blogging money goes. (I also have it linked to a separate bank account in a completely separate bank. More on this later.)
I have saved all of my blogging money until after tax time, (save at least 20% for this, maybe more, depending on which state you live in.) After taxes are completed, my remaining income will go right into our mutual fund. I only spend my google money, which tends to be between $500 & $750 a month– it pays for preschool & kid activities. Here is how to increase your google adsense earnings.) Its easier than you think!
- Website hosting
- Designs
- Conference tickets
- Travel fees for conference
- Food/expenses while you are traveling
- E-books & Webinars (here are our favorites: Publish an ebook online course &Growing your blog while managing your home)
- Business Cards
- Giveaway fees
- Writing materials (laptops, notebooks…)
- Home-office
SAVE ALL RECEIPTS! I have a huge mailing envelope on my refrigerator, taped right to the side of it, and I just put my receipts right into it as soon as I get home. It is easy and always there. Plus, it is sort of hidden, so it isn’t an eye sore.
I plan on seeing an accountant because I am making a pretty significant income blogging (which I say not to be boastful, but to be encouraging), plus I am a Play Therapist, which requires similar paperwork as a blogger, but these tips are exactly what I need to be prepared. I will add more tips later, as a part two to for tax tips for bloggers.
PS- did you schedule your tax appointment yet? If you are making money blogging, you may want to book an extra hour- our accountant has us book for two solid hours because of my blog. Just a tip! 🙂
Hello. You can still take your home office off as a percentage of your total home space. It is worth it since you are doing it anyway. The way that you are referring to is if you depreciate your entire house as a business expense. I have worked at home for years doing medical transcription, and this is how I do it…meaning I take the percentage of my total office space off on my taxes instead of depreciating the entire house. I also take that percentage of my utilities. Hope this helps you.
Awesome- thanks so much! I’ll update it. 🙂
Can you deduct these expenses if you rent your home as opposed to being a homeowner?
Gay,
You will have to check with your tax person, but I would think you could because you are not depreciating your home, you are just simply taking the percentage of space that you use for an office. I do not see why it would matter, but I am not for sure so please check on that.
Though I claim my (hardly anything) money I make blogging, can I still count deductibles if I don’t have a business tax ID? And at what point do I need one?
Thanks for this post! I got SUPER screwed this tax season (to the tune of upwards of $6k in owed taxes) because my employed put us 1099’s not w2’s…so no taxes were ever withheld. Pretty awful situation, but at the end of the day it’s a learning experience. I’ve branched off on my own now, formed a separate LLC and these tips are great. Have you ever heard of Expensify? I’m going to try it out to document all my receipts and spending for blogging/creative services. 😀
Happy Tax season.
Xx
Lauren Jade
“Simplifying Life, Maximizing Happiness”
http://LaurenJadeLately.com