Tuesday at 10pm EST, I joined in on #BlogElevated Twitter Chat about topic "Bloggers and Taxes".
It was a very informative chat that'll help bloggers know a bit better about handling their taxes and deductions.
It's important to pay your taxes each year to stay in good graces with the IRS. You don't want to find yourself hit with penalties, fines, or worst, jail time for tax fraud!
Below is a list of tips that'll help you know about taxes for bloggers.
1. If your expenses for your blog is more than your income in the past 3 years, you have a hobby, not a business. This means you can not write off hobby expenses.
2. If you buy ebooks or paid to attend webinars to help better your blog business, it is tax deductible.
3. Free products you review for companies on your blog is considered income.
4. Any advertising or business cards you create for your blog business is tax deductible.
5. You can get a tax deduction on mileage for business travel, postage/shipping, legal, accounting, and professional fees.
6. You can get a tax deduction on domain name, hosting, internet, web design, stock photos, email subscription fees , and home office.
7. If you had a sponsor pay for you to go to a conference, you must pay taxes on it.
8. Deductions are not credits but will help you owe less on your taxes.
9. Keep good records. Keep all receipts and payment confirmation to document your deductions in case of an audit.
10. Even barter income and illegal income has to be reported to IRS.
11. PayPal will only send you a 1099-K if you made over $20,000 and had 200 transactions.
12. You still have to claim your income even if you've not received a 1099-MISC tax form.
13. If you received more than $600, companies should send you a 1099-MISC for your taxes.
14. If a brand sponsors you to do anything, it’s income.
15. Gifts are different- gifts are given without being solicited and without any expectations for you to do anything, so you don't need to claim gifts on your income.
16. Usually goods that are consumed, like food samples or a bottle of wine, aren’t counted as income. Check with your accountant.
17. If a company pays you in gift cards, that's considered income.
18. Even if you'd earned less than $600, you must claim it on your taxes.
19. Tax ID is like a SSN but for your business. It’s useful for keeping your personal social security number more secure and private.
20. Hire a tax professional.
If you're ever in doubt about your taxes, always consult with a tax professional. It's always good to have peace of mind when your taxes are done correctly.
Disclosure- I'm not a tax professional. Please consult with an CPA if you have any questions regarding taxes.
I'm Louida from Atlanta, Georgia and I'm a mother of two daughters, blogger, and full time working mom at a Business Consulting Firm.
I love helping others learn how to start working from home on the internet free to supplement their current income.
I also blog at Productreviewmom.com
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